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According to the Neoclassical Theory of Distribution, in an Economy

Question 34

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According to the neoclassical theory of distribution, in an economy described by a Cobb-Douglas production function, workers should experience high rates of real wage growth when:


A) real interest rates are high.
B) real interest rates are low.
C) average labor productivity is growing rapidly.
D) capital's share of income is growing rapidly.

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