Suppose That the Australian Economy Initially Uses 50 Billion Hours

Multiple Choice

Suppose that the Australian economy initially uses 50 billion hours of labor to produce $5 trillion of real GDP. If 50 billion more hours are employed and Australia's real GDP increases by $4 trillion more,

A) Australia's production function exhibits diminishing returns.
B) Australia's production function exhibits increasing returns.
C) Australia has an Okun Wedge of $1 trillion.
D) Australia has positive Lucas wedge.
E) Australia's production possibility frontier has a positive slope.