Suppose that an economy has this production function: $Y = AK^{0.2}N^{0.8}$ where Y is output, A is total factor productivity, K is capital and N is labor. Suppose that the government wants to target a 4% GDP growth and let's assume that the government cannot affect TFP and capital growth, which grow by 2.5% and 2.1% respectively. The government, however, can increase labor supply by lowering the personal income tax. By how much should the government increase labor force in order to achieve the 4% GDP growth target?
? A. 0.89%
? B. 2.67%
? C. 3.25%
? D. 1.3%