Suppose the aggregate production function is represented by Y = ...

[audragclark]

Suppose the aggregate production function is represented by Y = AN. Which of the following expressions represents the number of additional workers required to increase production by one unit?
 
  A) 1/A
  B) Y/N
  C) 1/N
  D) 1/Y
  E) none of the above

Question 2

Explain the difference between endogenous and exogenous variables.
 
  What will be an ideal response?

[taylorsonier]

Answer to Question 1

A

Answer to Question 2

Endogenous variables are determined by the model. Exogenous variables are taken as given and, for example in this model, do not change as income changes.