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Suppose that the production function is given by Y=AK 0.4 N 0.6. What is the change in output if both capital and labor rise by
Suppose that the production function is given by Y=AK0.4N0.6.What is the change in output if both capital and labor rise by 31% and total factor productivity falls by 31%?
A.0%.
B.31%.
C.-31%.
D.62%.
E.93%.
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