Assume a Cobb-Douglas production function where the share of capital and labor is each 1/If the growth in total factor productivity is zero and labor and capital each grow by 2%, then
A. output growth is 4% and the marginal product of capital is Y/K
B. output growth is 2% and the marginal product of capital is Y/(2K)
C. output growth is 2% and the marginal product of labor is (2Y)/N
D. output growth is 1% and the marginal product of labor is Y/(2N)
E. output growth is 1% and the marginal product of capital is (2Y)/K
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Assume a Cobb-Douglas production function where the share of capital is 0.3 and the share of labor is 0.If capital grows by 1.5%, labor grows by 2%, and growth of total factor productivity is 1.2%, by how much does total output grow?
A. 0.047
B. 0.035
C. 0.0305
D. 0.0285
E. 0.012
Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.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. 0.0045
B. 0.006
C. 0.0105
D. 0.015
E. 0.02
Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.If there is no technological progress, labor grows at 2%, and capital grows at 1.5%, then real output will grow by
A. 0.0045
B. 0.015
C. 0.0185
D. 0.0285
E. 0.0305
Assume that the rate of technological advance is 1.5% and both labor and capital grow at a rate of 2%. What is the rate of output growth if labor's share of income is three times as high as capital’s share and there are constant returns to scale?
A. 0.015
B. 0.02
C. 0.03
D. 0.035
E. 0.055