If $K = \bar { K }$ and $L = \bar { L }$
, then output is determined by:
A) the total amount of labor in an economy
B) the total amount of capital in an economy
C) the total amount of capital and labor available in an economy
D) a percentage of capital and labor in an economy
E) Not enough information is given.

Question

Quizplus · Accepted Answer

The output is determined by the total amount of capital and labor available in an economy when both capital and labor are fully utilized.

If K=KˉK = \bar { K }K=Kˉ And L=LˉL = \bar { L }L=Lˉ

If $K = \bar { K }$ And $L = \bar { L }$