The aggregate production function describes the relationship between the total output in the economy and
A) physical capital,human capital,and natural resources.
B) total spending in the economy.
C) total income earned in the economy.
D) the inflation rate.
E) the unemployment rate.

Question

Quizplus · Accepted Answer

The aggregate production function describes the relationship between the total output in the economy and physical capital, human capital, and natural resources. This means that the amount of output produced in the economy is determined by the amount of these three factors that are available and how efficiently they are used in production. The other options, such as total spending or income, the inflation rate, or the unemployment rate, do not directly relate to the aggregate production function.

The Aggregate Production Function Describes the Relationship Between the Total