According to the law of diminishing returns, as real GDP increases along the aggregate production function, which of the following effects eventually occurs?

Question

Answer

An additional unit of labour produces less output than the previous unit.

Answer

An additional unit of labour decreases output.

Answer

An additional unit of capital produces more output than an additional unit of labour.

Answer

An additional unit of labour increases the real wage rate.

Answer

An additional unit of labour produces more output than the previous unit.

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According to the law of diminishing returns, as real GDP increases along the agg...

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