Consider the following production function? $Y = A \times K ^ { a } \times L ^ { l - a }$ If a = 0.4, over the past year output grew 4 percent, total factor productivity grew 2 percent, and capital grew 3 percent, labor grew by

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The correct answer is A.The production function is Y = A * K ^ a * L ^ (1 - a). If a = 0.4, then Y = A * K ^ 0.4 * L ^ 0.6.The growth rate of output is given by:dY/Y = dA/A + 0.4 * dK/K + 0.6 * dL/LWe are given that dY/Y = 0.04, dA/A = 0.02, and dK/K = 0.03. Substituting these values into the equation above, we get:0.04 = 0.02 + 0.4 * 0.03 + 0.6 * dL/LSolving for dL/L, we get:dL/L = (0.04 - 0.02 - 0.4 * 0.03) / 0.6 = 0.0133Therefore, labor grew by 1.33 percent.

Consider the Following Production Function Y=A×Ka×Ll−aY = A \times K ^ { a } \times L ^ { l - a }Y=A×Ka×Ll−a

Consider the Following Production Function $Y = A \times K ^ { a } \times L ^ { l - a }$