The supply of real GDP is a function of
A) the quantities of labor, capital and the state of technology.
B) the total expenditures of consumers, investors and government.
C) only the state of technology.
D) the sum of wages, salaries, corporate profits, rents and interest.

Question

Quizplus · Accepted Answer

Real GDP is the total output produced in an economy, and this output is determined by the quantities of inputs such as labor and capital as well as the level of technology. Therefore, choice A is the correct answer. However, choice B is incorrect as it only reflects the total expenditures in an economy, not the actual supply of goods and services. Choice C is also incorrect as technology is just one of the inputs that contribute to the supply of real GDP. Lastly, choice D is incorrect as it only represents the distribution of income generated from the production of real GDP, not the actual supply of it.

The Supply of Real GDP Is a Function of