The production function is Y = A Ka L1- a. If a = 0.3, and over the past year output grew 5 percent, capital grew 2 percent, and labor grew 3 percent, what was the growth rate of total factor productivity (TFP)?

Select one:

a. 0 percent

b. 2.3 percent

c. 2.5 percent

d. 2.7 percent