The quantity of real GDP supplied _ _ the amount of _.
A) decreases as; capital and labor input decreases
B) decreases as; capital input increases
C) increases as; labor input decreases
D) is unaffected by; technology

Question

Quizplus · Accepted Answer

Real GDP supplied decreases as the amount of capital and labor input decreases. This is because the production process requires inputs such as labor and capital to produce goods and services. As the amount of input decreases, the production capacity decreases, leading to a decrease in real GDP supplied. The other options are incorrect as they do not reflect the relationship between real GDP supplied and input factors.

The Quantity of Real GDP Supplied _ _ the Amount