The Cobb-Douglas Aggregate Production Function Provides a Fairly Good Approximation

The Cobb-Douglas aggregate production function provides a fairly good approximation of the U.S.economy if we assume that

A) the shares of capital and labor are equal
B) the share of capital is 0.65 and the share of labor is 0.35
C) the share of capital is 0.45 and the share of labor is 0.55
D) the share of capital is 0.25 and the share of labor is 0.75
E) the share of capital is 0.15 and the share of labor is 0.85

Correct Answer:

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