Question

question 5 (2 points)
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based on a countrys aggregate production function,
an increase in human capital and physical capital would also increase the aggregate production function.
only improvements in technology increase the aggregate production function.
population or workforce is the most important component of the aggregate production function.
all components of the aggregate production function have to increase for the aggregate production function to increase.

Explanation:

The aggregate production function \( Y = A\times F(K, H, L) \) (where \( Y \) is output, \( A \) is technology, \( K \) is physical capital, \( H \) is human capital, and \( L \) is labor). An increase in human capital (\( H \)) and physical capital (\( K \)) would shift the production function upwards (assuming positive marginal products of \( H \) and \( K \)).
Technology (\( A \)) is not the only factor (eliminating the second option). Population/labor (\( L \)) is not the most important in isolation (eliminating the third option). It's not necessary for all components to increase simultaneously (e.g., if \( A \) improves, \( Y \) can increase even if \( K\) or \( H\) or \( L\) is constant; eliminating the fourth option).

Answer:

An increase in human capital and physical capital would also increase the aggregate production function.