Multiple Choice
What does the Cobb-Douglas production function assume about the input shares in the economy?
A) the capital share is larger than the labor share of income
B) both the capital and labor shares of income grow over time
C) both the capital and labor shares of income remain relatively constant over time
D) the capital share of income is equal to the labor share of income
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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