Suppose that the production function is Cobb-Douglas. That is, the production function is . Further, assume that the parameter α = 0.3. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percentage change)? The real rental price of capital (in percentage change)? The real wage (in percentage change)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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