Aggregate Production Function 1 Aggregate Production Function 2 K = Physical capital stock Refer to the figure above. Which of the following statements holds true regarding aggregate production function 2? 0 Up to point B, as aggregate output increases, physical capital also increases. 0 As physical capital increases, aggregate output remains constant. 0 As aggregate output increases, labor remains constant. 0 Up to point A, as aggregate output increases, labor also increases