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The Idea That the Production Function Exhibits _______ Implies That

Question 59

Multiple Choice

The idea that the production function exhibits _______ implies that ________.


A) diminishing returns;the Lucas Wedge increases at output increases
B) diminishing returns;each additional unit of labor employed generates an ever-decreasing amount of real GDP
C) increasing returns;potential GDP is always increasing
D) increasing returns;output should increase steadily as technology grows
E) constant returns;each additional unit of labor employed generates an increasing amount of real GDP

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