A production function relates
A)the level of output to the level of technology.
B)the price level to the level of aggregate output.
C)aggregate output to the level of inputs and technology.
D)aggregate demand to aggregate supply.

Question

Quizplus · Accepted Answer

A production function shows the relationship between the quantity of inputs used in production and the resulting level of output. It relates aggregate output to the level of inputs and technology used in the production process. Therefore, option C is the correct choice. Option A refers to the relationship between the level of technology and output. Option B relates the price level to output. Option D refers to the relationship between aggregate demand and supply.

A Production Function Relates