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Suppose the Payments to Capital and Labor Are (W*L*)/Y* = (wL/rK)=Y\left( w ^ { * } L ^ { * } / r ^ { * } K ^ { * } \right) = Y ^ { * }

question 37

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Suppose the payments to capital and labor are (w*L*) /Y* = 2/3 and (r*L*) /Y* = 1/3, respectively. One implication of this result is:


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