Assume That the Production Function Is Cobb-Douglas with Parameter $\alpha$ = 03 in the Neoclassical Model, If the Labor Force Increases

Multiple Choice

Assume that the production function is Cobb-Douglas with parameter $\alpha$ = 0.3. In the neoclassical model, if the labor force increases by 10 percent, then output:

A) increases by about 10 percent.
B) increases by about 7 percent.
C) increases by about 3 percent.
D) does not increase since the new workers are unemployed.