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Answer to Question #66848 in Macroeconomics for jane
Question #66848
Use the neoclassical theory of distribution to predict the impact on the real wage (w) and
real rental price of capital (r) of each of the following events.
(a) A wave of immigration increases the labor force.
(b) An earthquake destroys some of the capital stock.
real rental price of capital (r) of each of the following events.
(a) A wave of immigration increases the labor force.
(b) An earthquake destroys some of the capital stock.
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