Question: Suppose that the production function is given by Y=AK 0.4 N 0.6. What is the change in output if both capital and labor rise by

Suppose that the production function is given by Y=AK0.4N0.6.What is the change in output if both capital and labor rise by 31% and total factor productivity falls by 31%?

A.0%.

B.31%.

C.-31%.

D.62%.

E.93%.

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