Suppose the Payments to Capital and Labor Are (W*L*)/Y* =

question 38

Multiple Choice

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

• A) .
• B) .
• C) .
• D) .
• E) .

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