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Basic Question 1 of 11

Let α = 1/3 in the Cobb-Douglas production function. If both L and K increase by 10%, the output will increase by:

A. 10%.
B. 20%.
C. Cannot be calculated.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

contrast capital deepening investment and technological progress and explain how each affects economic growth and labor productivity;

demonstrate forecasting potential GDP based on growth accounting relations;

CFA® 2025 Level II Curriculum, Volume 1, Module 9.