Multiple Choice
Assume a production function with constant returns to scale.The share of capital in production is 1/4 and the share of labor is 3/4.If both labor and capital grow at 1.6% and the rate of technological progress is 1.2%, what is the rate of growth of real output?
A) 1) 2%
B) 1) 6%
C) 2) 8%
D) 3) 2%
E) 4) 8%
Correct Answer:
Verified
Correct Answer:
Verified
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