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A production function Y = F(A,K,L) shows how much output can be produced with a given amount of capital and labor. The production function can shift to affect overall national productivity. Example: changes in energy supplies or cost as is our present case.

Discussion: based on our present economic situation-"recession"- how will it negatively affect K? what impact would it have on our national production?

Guessing Y = GDP? What is F(A,K,L)?

From: [Re]cUrSivE
Guessing Y = GDP? What is F(A,K,L)?

F-"is a function of"

Y-Real GDP

A-Productivity

K- Capital Stock

L- Labor

You need to explain how the production part of GDP is affected during a recession.

http://useconomy.about.com/od/grossdomesticproduct/f/Recession.htm