Question: Suppose production occurs using a Cobb - Douglas production function where represents the total factor productivity of the economy and are the inputs of physical

Suppose production occurs using a Cobb-Douglas production function
where represents the total factor productivity of the economy and are the inputs of physical capital and labor used in production. Assume that the economy possesses a fixed supply of physical capital,
, and labor,
.
Suppose
. What will be the equilibrium level of output in the economy?
Question 2 options:
100
400
16,000
40
1

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