Suppose that the Australian economy initially uses 50 billion hours of labor to produce $5 trillion of real GDP.If 50 billion more hours are employed and Australia's real GDP increases by $4 trillion more,

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If 50 billion more hours of labor are employed and real GDP only increases by $4 trillion, this indicates that the production function is exhibiting diminishing returns to labor. This means that each additional hour of labor is contributing less to output than the previous hour of labor.

Suppose That the Australian Economy Initially Uses 50 Billion Hours