If the Production Function Is Y = AK^2/3L^1/3 in the Land

question 1

Multiple Choice

If the production function is Y = AK^2/3L^1/3 in the land of Antegria, and the labour force increases by 5 percent while capital is constant, labour productivity, measured by Y / L, will:

• A)increase by 3.33 percent.
• B)increase by 1.67 percent.
• C)decrease by 1.67 percent.
• D)decrease by 3.33 percent.

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