-The aggregate production function of a hypothetical economy is shown in the diagram at right.In year 1,production takes place at point R.Production at which of the following points for year 2 would indicate an unambiguous increase in labor productivity?

Question

Quizplus · Accepted Answer

An unambiguous increase in labor productivity would be indicated by a movement to a higher point on the same production function curve, such as from point R to point S, which represents higher output with the same amount of labor.

-The Aggregate Production Function of a Hypothetical Economy Is Shown