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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:
B. 20%.
C. Cannot be calculated.
A. 10%.
B. 20%.
C. Cannot be calculated.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.