The Idea That the Production Function Exhibits _______ Implies That

Multiple Choice

The idea that the production function exhibits _______ implies that ________.

A) diminishing returns;the Lucas Wedge increases at output increases
B) diminishing returns;each additional unit of labor employed generates an ever-decreasing amount of real GDP
C) increasing returns;potential GDP is always increasing
D) increasing returns;output should increase steadily as technology grows
E) constant returns;each additional unit of labor employed generates an increasing amount of real GDP