Use the Cobb-Douglas production function to answer this question. Suppose that the capital-labor ratio is raised to the power 1/2. If nothing else changes and if the capital-labor ratio grows at 3% per year, then output per worker

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The Cobb-Douglas production function implies that output per worker grows at the rate of the capital-labor ratio raised to the power given, in this case, 1/2. If the capital-labor ratio grows at 3% per year, then output per worker grows at half that rate, or 1.5% per year, because (3% * 1/2) = 1.5%.

Use the Cobb-Douglas Production Function to Answer This Question