Question: Consider the production function Real GDP=T(L+K) , where T is the technology coefficient, L is units of labor, and K is units of capital. Suppose
Consider the production function Real GDP=T(L+K) , where T is the technology coefficient, L is units of labor, and K is units of capital. Suppose T = 0.3, L = 3, and K = 3, as shown here: Real GDP=0.3(3+3) What will happen to Real GDP if technology increases from 0.3 to 0.4, whereas labor and capital do not change? Real GDP will fall from 1.8 units to 2.4 units. Real GDP will rise from 1.8 units to 2.4 units. Real GDP will not change
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