The table below represents Freedonia's macroeconomic data for Year 1 and Year 2.Suppose that the production function is given by Y = AK0.25N0.75. Between Year 1 and Year 2, total factor productivity of Freedonia's economy increased by

A. 5.5%.
B. 12.7%.
C. 5.0%.
D. -1.5%.


Answer: D

Economics

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