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Assume a Production Function with Constant Returns to Scale

Question 10

Multiple Choice

Assume a production function with constant returns to scale.Labor's share of income is 0.7 and capital's share is 0.3.If labor grows at 4% and capital grows at 3%, how many years would it take to double the current level of output if no technological advances are made?


A) 7
B) 10
C) 19
D) 23
E) 33

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