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Suppose the capital share in Canada is = 2/5. Mark ALL the CORRECT statements. For this question, use the growth accounting formula given in class.

Suppose the capital share in Canada is = 2/5. Mark ALL the CORRECT statements. For this question, use the growth accounting formula given in class. gY = gA gK (1 ) gL a) If capital increases by 10%, labor hours increase by 5%, and total output increases by 10% relative to last year, then TFP should decrease by 1%. b) If capital increases by 15%, labor hours decrease by 5%, and TFP increases by 5% relative to last year, then total output should increase by 5%. c) If capital increases by 10%, TFP increases by 10%, and total output increases by 10% relative to last year, then labor hours should increase by 10%. d) If labor hours increase by 10%, TFP increases by 5%, and total output increases by 15% relative to last year, then capital should increase by 1%

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