Consider the equation GDP = F × (F_E/F)× (GDP/F_E). Which component describes the fraction of the available factors actually employed at any time? A)(GDP/F_E) B)(F_E/F) C)GDP D)F E)F_E

Question

Quizplus · Accepted Answer

The term (F_E/F) represents the fraction of available factors actually employed, as it is the ratio of the actual input of factors (F_E) to the potential input of factors (F).

Consider the Equation GDP = F × (FE/F)× (GDP/FE)

Consider the Equation GDP = F × (F_E/F)× (GDP/F_E)