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Consider the following hypothetical economy. The production function is Cobb-Douglas and capital's share of income is 40%. All values are continuously compounded, annualized growth rates,

Consider the following hypothetical economy. The production function is Cobb-Douglas and capital's share of income is 40%. All values are continuously compounded, annualized growth rates, in percent.

Growth in real wages: 2.0

Growth in capital stock: 4.0

Growth in real rental rate of capital: 3.0

Using the information provided in the table above, the growth rate of labor supply is A. 2%

B. 5%

C. Not enough information to answer D. None of the above

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