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Assume: Total Population is fixed N proportion lives in the capital 1-N proportion lives in the countryside Population Growth Rate is either zero or both

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Assume: Total Population is fixed N proportion lives in the capital 1-N proportion lives in the countryside Population Growth Rate is either zero or both regions have the same growth rates Now Assume: The countryside has a higher population growth rate. Question: Given the tax rates, Explain how this will affect wages in the capital and the countryside

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