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Question
Consider the following production functionY= A×Ka×L1−a.
If a = 0.4, and over the past year total factor productivity (TFP) grew 2.6 percent, capital grew 2 percent, and labor grew 1 percent, what was the growth rate of output over the year?
a. 2 percent
b. 3 percent
c. 4 percent
d. 5 percent
Answer
This answer is hidden. It contains 1 characters.
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