The production function shows the relationship between
A)real GDP and the combination of labor, capital, and technological inputs.
B)potential and real GDP.
C)inflation and potential GDP.
D)GDP and real GDP.
E)a country's GDP and GDP in the rest of the world.

Question

Quizplus · Accepted Answer

The production function measures the output (i.e., real GDP) that can be produced from a given combination of labor, capital, and technological inputs. It shows the relationship between these inputs and the production of goods and services in an economy.

The Production Function Shows the Relationship Between