Multiple Choice
Suppose than an economy has output Y = AK0.3L0.7, that Y equals $42 trillion, capital K is $64 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A?
A) less than 0.01
B) around 0.25
C) roughly 0.33
D) close to 0.4
E) exactly 144
Correct Answer:
Verified
Correct Answer:
Verified
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