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Suppose K and L Grow at Constant Rates Given By \bar

Question 61

Multiple Choice

Suppose k and l grow at constant rates given by gˉk\bar { g } _ { k } and gˉl\bar { g } _ { l } '
What is the growth rate of y if y=ka/l(1a) ,a>0?y = k ^ { a } / l ^ { ( 1 - a ) } , a > 0 ?


A) gy=gˉka+gl(1a) g _ { y } = \bar { g } _ { k } ^ { a } + g _ { l } ( 1 - a )
B) gy=a(gˉk+gˉl) g _ { y } = a \left( \bar { g } _ { k } + \bar { g } _ { l } \right)
C) gy=agˉ+(1a) gˉlg _ { y } = a \bar { g } _ { \ell } + ( 1 - a ) \bar { g } _ { l }
D) gy=agˉ(1a) gˉlg _ { y } = a \bar { g } _ { \ell } - ( 1 - a ) \bar { g } _ { l }
E) gy=agˉk/(1a) gˉlg _ { y } = a \bar { g } _ { k } / ( 1 - a ) \bar { g } _ { l }

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