2. Discuss the main explanations of decline of the Labor Share of national income observed recently in many countries. (Hint: Below you can find a suggested outline for your discussion but feel free to organize it as you wish). (a) Why does this evidence pose a challenge for the neoclassical theory of growth? (b) Do you consider that the rise the capital/output ratio is a good can- didate to explain this fact? (c) Under what circumstances would both the capital share and the labor share decline simultaneously? (d) Do you thing that the functional distribution of income (labor share and capital share) are sufficient statistics to describe the patterns of inequality observed in advanced economies recently? (e) To what extent does technological progress contribute to increase or decrease inequality in advanced economies