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420worksheet3 - b Suppose that immigration raises the labor...

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ECON420-002&004 Worksheet 3 1. Suppose that an economy’s production function is Cobb-Douglas with parameter α =0.3, a. Calculate the fraction of income that capital and labor receive?
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Unformatted text preview: b. Suppose that immigration raises the labor force by 10 percent. What happens to total output (in percent). The rental price of capital? The real wage?...
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