The economy's aggregate production function is given by:

= +

Where A and B are constant parameters while K and L denote, respectively, the economy's stock of capital and labour. Answer the following question:

3) Assuming perfect competition in all markets where workers are paid a wage W and the rental rate of capital is R, what is the expression for the share of GDP accruing to labour, that is WL/PY. How does this expression differ from what you would obtain if the aggregate production function were Cobb-Douglas?