To analyze aggregate productivity,economists typically assume ________.
A)that the hours each person works varies with the wage rate
B)that all of the capital and labor in the economy are fully utilized
C)that output can increase only if inputs have become more productive
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Economists typically assume that all of the capital and labor in the economy are fully utilized when analyzing aggregate productivity, as this allows for a clearer assessment of productivity changes without the confounding effects of underutilized resources.

To Analyze Aggregate Productivity,economists Typically Assume ________