Total Output Is Determined By Factors of production: K =capital L =labor the economy's level of technology, expressed by production function, denoted Y=F(K,L) CHAPTER 3 National Income slide 3 CHAPTER 3 National Income slide 3 Total Output Is Determined By ▪ Factors of production: K =capital L = labor ▪ the economy’s level of technology, expressed by production function, denoted Y = F (K,L) 1