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2. (The General Equilibrium) The economy's production function takes both capital and labor to produce output. Suppose the loanable funds (capital) and labor markets are
2. (The General Equilibrium) The economy's production function takes both capital and labor to produce output. Suppose the loanable funds (capital) and labor markets are initially in its equilibrium. Suppose further that labor supply is upward-sloping. Then, both capital and labor are more productive and profitable to the firms
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International Economics
Authors: James Gerber
6th edition
978-0132950145, 132950146, 132948915, 978-0132948913
