Question: this question is about aggregate production function Use the graph below of an economy's aggregate production function to answer the following set of questions. Assume

this question is about aggregate production function

this question is about aggregate production function Use the graph below of

Use the graph below of an economy's aggregate production function to answer the following set of questions. Assume this economy uses only capital (K) and labor (N) to produce real GDP. Furthermore assume that the level of technology is held constant. D No NI Suppose this economy is initially producing at point E but then moves to point D Explain the change in the economy that results from this movement. b) Given the change in (a), what happened to labor productivity? Explain your answer. Suppose that the economy is initially at point E and then something changes in this economy so that the economy produces at point C. Describe what changed and then comment on how this movement from point E to point C affects labor productivity

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