|
Title: Scenario: Two economies, A and B, have identical aggregate production functions with diminishing ... Post by: mariasmakatof on Dec 19, 2022 Scenario: Two economies, A and B, have identical aggregate production functions with diminishing returns. In both economies, capital and labor are equally important for production. Economy A has twice as many efficiency units of labor as economy B. Economy B has twice as much physical capital stock as economy A.
Refer to the scenario above. Which of the following statements is TRUE? ▸ Productivity must be greater in economy A. ▸ The relationship between GDP and physical capital stock cannot be the same in economies A and B. ▸ The relationship between GDP and total efficiency units of labor must be the same in economies A and B. ▸ All of the above. Title: Scenario: Two economies, A and B, have identical aggregate production functions with diminishing ... Post by: inhibitor128 on Dec 19, 2022 Content hidden
|