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Assume a Cobb-Douglas Production Function Where the Share of Labor

Question 49

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, labor grows at 2%, and capital grows at 1.5%, then real output will grow by


A) 0) 45%
B) 1) 50%
C) 1) 85%
D) 2) 85%
E) 3) 05%

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