As additional units of labour hours are employed, holding all other factors constant, along the production function,
A) nominal GDP decreases at an increasing rate.
B) real GDP increase at a constant rate.
C) real GDP increases at a decreasing rate.
D) real GDP increases at an increasing rate.
E) real GDP initially decreases and then starts to increase.
Correct Answer:
Verified
Q34: When the labour market is in equilibrium,
A)
Q35: The effect of an increase in population
Q36: The factors of production that produce real
Q37: The production function displays
A) increasing returns.
B) diminishing
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