Question: 3 . Suppose that the aggregate production function is adequately modeled as a Cobb - Douglas function = . 3 , the capital input grows

3. Suppose that the aggregate production function is adequately modeled as a Cobb-Douglas
function =.3, the capital input grows at a 4% rate, and the labor input grows at a 6% rate.
(These are, of course, exponential growth rates.)
a. If real output grows at an 8% rate, what is the growth rate in multifactor productivity?
b. If multifactor productivity grows at a 1% rate, how fast will real output grow?
c. If multifactor productivity grows at a 1% rate, at what rate is labor productivity i.e.,
output per unit of labor used growing?

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