Suppose the aggregate production function is given by the following: Y = N.Given this information,we know that labor productivity is represented by the following:

Name: Suppose the aggregate production function is given by the following: Y = N.Given this information,we know that labor productivity is represented by the following:
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Question

Quizplus · Accepted Answer

Labor productivity is output per worker, which in this case is Y/N. Since Y = N, labor productivity is N/N = 1.

Suppose the Aggregate Production Function Is Given by the Following