The aggregate production function is the
A) relationship between the amount of labor employed in the economy and the total amount of output produced
B) relationship between available labor and the total amount of output produced
C) the relationship between land and capital and labor employed in the economy
D) long-run equilibrium of the macroeconomy
E) amount of output any worker can produce given existing land and capital constraints

Question

Quizplus · Accepted Answer

The aggregate production function shows the relationship between the inputs of labor and capital and the total amount of output produced in the economy. It is typically written as Y = F(K, L), where Y is the total output, K is the amount of capital, and L is the amount of labor. Therefore, the correct answer is A, as it specifically mentions the relationship between labor and output.

The Aggregate Production Function Is the