Suppose that capitals and labors shares

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Suppose that capital's and labor's shares at .3 and .7

A. What would the effect be (on output) of increasing the capital stock by 10 percent?

B. What would the effect be of increasing the pool of labor by 10 percent?

C. If the increasing labor is due to population growth, will the resulting increasing have an effect on people’s welfare?

D. What if the increase in labor, instead, is due to influx of women in the workplace?

Reference no: EM13838164

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