According to the Neoclassical Theory of Distribution, in an Economy

Multiple Choice

According to the neoclassical theory of distribution, in an economy described by a Cobb-Douglas production function, when average labor productivity is growing rapidly:

A) labor's share of total income will be increasing.
B) labor's share of income will be decreasing.
C) workers will experience high rates of real wage growth.
D) economic profits will be positive.