One of the implications of Walras' Law is that the ratios of prices (rather than the absolute

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One of the implications of Walras' Law is that the ratios of prices (rather than the absolute levels of prices) are determined in general equilibrium. In Learning-By-Doing Exercise 16.2, show that price labor will be 25/52 ≈ 0.48 of the price of capital, as illustrated in Figure 16.9.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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