If capital and labor each grow 5% in a year,the elasticities of output with respect to capital and labor sum to one,and productivity grows 2% in the year,by how much does output grow during the year?
A)2%
B)3%
C)5%
D)7%

Name: If capital and labor each grow 5% in a year,the elasticities of output with respect to capital and labor sum to one,and productivity grows 2% in the year,by how much does output grow during the year? A)2% B)3% C)5% D)7%
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Question

Quizplus · Accepted Answer

The Answer is D

If Capital and Labor Each Grow 5% in a Year,the