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Eduncle posted an MCQ
March 01, 2020 • 00:05 am 0 points
  • UGC NET
  • Economics

Consider an economy with a linear homogeneous Cobb-Douglas production function with two inputs-capital and labour. 

The share of capital and labour are, respectively, 1/3 and 2/3. The rates of growth of capital and labour are, respectively 6% and 3% per annum. If the rate of growth of output is 6% per annum. What is the rate of growth of output due to Total Factor Productivity (TFP) ?

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