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Assume a Cobb-Douglas function. The economy has experienced the following growth rates over one year: 4% for output, 2% for capital, and 1% for labor.

Assume a Cobb-Douglas function. The economy has experienced the following growth rates over one year: 4% for output, 2% for capital, and 1% for labor. The elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively. What is the growth rate of productivity?[Round to one decimal place] Question 1 Answer a. 2.0% b. 3.0% c. 3.3% d. 2.7%

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