Let GDP = $7,000 billion at the beginning of 1996. To achieve a GDP of
$7,700 billion by December 31 of that year in the absence of growth in either the size of the labor force or productivity and assuming the capital and labor share distribution of the U.S. economy, the capital stock would have to increase by
A) 3 percent.
B) 3.3 percent.
C) 10 percent.
D) 33 percent.
E) none of the above.
Correct Answer:
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