The aggregate production function Y = f(L, H, K) shows that economic growth can occur if:
(i) more labor is employed.
(ii) human capital is reduced.
(iii) the dependency ratio rises.
(iv) the capital stock stays constant.

Question

Quizplus · Accepted Answer

Economic growth can occur if more labor is employed, as it increases the output in the production function. Reducing human capital or increasing the dependency ratio would not contribute to growth, and keeping capital stock constant does not inherently lead to growth.

The Aggregate Production Function Y = F(L, H, K) Shows