Multiple Choice
If capital grows at 3 percent per year and labor grows at 1 percent per year, and capital's share is 1/3 while labor's share is 2/3, if there is no technological progress and the neoclassical assumptions hold, the growth rate of output will be:
A) 1-1/3 percent per year.
B) 1-2/3 percent per year.
C) 3 percent per year.
D) 2-1/3 percent per year.
Correct Answer:
Verified
Correct Answer:
Verified
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