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Suppose Production in an Economy Is Represented by a Cobb-Douglas

Question 149

Multiple Choice

Suppose production in an economy is represented by a Cobb-Douglas production function.If each worker in the economy becomes more productive,while the number of workers in the economy,the physical capital stock,and the state of technology remain unchanged,________.


A) the GDP of the economy will increase
B) the income per capita in the economy will decrease
C) the inflation rate in the economy will decrease
D) the exchange value of its currency will increase in the foreign exchange market

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