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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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