Suppose the Current Level of Output Is 5000

question 63

Multiple Choice

Suppose the current level of output is 5000.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,a 10% increase in capital combined with a 5% increase in labor and a 5% increase in productivity would increase the current level of output to

• A)5015.
• B)5325.
• C)5575.
• D)6000.

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