Multiple Choice
If the production function is Y = AK2/3L1/3 in the land of Solovia, and the labor force increases by 5 percent while capital is constant, labor productivity will:
A) increase by 3.33 percent.
B) increase by 1.67 percent.
C) decrease by 1.67 percent.
D) decrease by 3.33 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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