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Discuss how, under each of the following circumstances, the shadow price might differ from the market price: (a) The involuntary unemployment rate is 10%. (b)
Discuss how, under each of the following circumstances, the shadow price might differ from the market price: (a) The involuntary unemployment rate is 10%. (b) The government has imposed a tariff on the importation of textiles. (c) The government has imposed a quota on the importation of oil. (d) The government has imposed a tax on interest income. (e) The government has regulated airlines, so that prices exceed competitive levels
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