Assume a Cobb-Douglas Production Function Where the Share of Labor

question 34

Multiple Choice

Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.3.If there is no technological progress, capital grows at 1.5%, and labor doesn't grow at all, what is the growth rate of output?

• A)0)45%
• B)0)60%
• C)1)05%
• D)1)50%
• E)2)00%

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