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3. An income fox. Suppose the U.S. Congress decides to levy an income tax on both wage income and capital income. Instead of receiving wL

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3. An income fox. Suppose the U.S. Congress decides to levy an income tax on both wage income and capital income. Instead of receiving wL + rK = Y, consumers receive [1 _ 1-)wL + [1 1-]rK = [1 TJY. Trace the consequences of this tax for output per worker in the short and long runs, starting from steady state

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