Consider the Following Production Function? Y = A×K^a×L^1?a

question 23

Multiple Choice

Consider the following production function? Y = A×K^a×L^1?a.
If a = 0.3, and over the past year total factor productivity (TFP) grew 2.3 percent, capital grew 2 percent, and output grew 5 percent, what was the growth rate of labor?

• A)2 percent
• B)3 percent
• C)4 percent
• D)5 percent

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