Question

​Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce only one​ good: good X. Production in both countries is a function of total efficiency units of labor and physical capital stock. The aggregate production functions will shift upward when​ ________ produce(s) a higher output. A. the same amount of labor and a higher amount of capital B. the same amount of capital and a higher amount of labor C. a higher amount of capital and labor D. the same amount of capital and labor

Answer 1

Answer:

D. the same amount of capital and labor.

Explanation:

Based on the scenario being described within the question it can be said that the aggregate production functions will shift upward when​ the same amount of capital and labor. This is because the aggregate production function describes how real GDP within an economy depends on available inputs, such as the labor that is being put into production, and that labor needs capital.