Author Question: The production function is a relationship between the amount of labor employed and A) the wage ... (Read 65 times)

student77 · **on:** Jun 30, 2018

The production function is a relationship between the amount of labor employed and

A) the wage rate paid to the workers.
B) the maximum quantity of real GDP that can be produced.
C) the maximum quantity of nominal GDP that can be produced.
D) the amount of labor workers supply.
E) all other resources at different levels of employment.

Question 2

Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 5 percent, an initial deposit of 10,000 will lead to a total increase in deposits of

A) 500. B) 10,000. C) 50,000. D) 200,000.