Question: Consider an economy characterized by a Cobb-Douglas production function with elasticity of output with respect to capital of= 0.3. If immigration increases the labor force

Consider an economy characterized by a Cobb-Douglas production function with elasticity of output with respect to capital of= 0.3. If immigration increases the labor force by 3%, then in the short-run

A. output increases by 2.1%

B. output increases by less than 2.1%

C. labor's share of income falls

D. none of the above/multiple of the above

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