Suppose that in 2002 Freedonia had GDP equal to 2000 million,the capital stock was equal to 1700 million,the number of employees equaled 70 million.The production function is Y = AK⁰.²⁵ᴺ⁰.⁷⁵.Total factor productivity of the economy in that year was approximately equal to
A) 0.09.
B) 2.61.
C) 4.19.
D) 12.87.
Correct Answer:
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B)marginal
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