I use this economics stack exchange for the first time. I have a question regarding the Cobb-Douglas production function. The question is this: GDP in an economy is growing at 3% a year in real terms. Population is constant. The government decides to allow a significant increase in immigration so that the population (and the workforce) starts to grow by 1% a year. Output is produced in the economy according to a Cobb-Douglas production function. The share of labour income in GDP is 70%. How much higher will GDP be as a result of the new immigration policy after 20 years? How much higher will GDP per capita be?
I am not be able to understand how to use the function in this problem. Sorry if I put a question in a wrong way. Thank you.