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Describe the income inequality hypothesis

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Use the production function equation to describe the 'income inequality hypothesis', i.e., that labour income is being redistributed to capital. What might that particular model imply about what is happening and why? Note: this is not a 'comparative static' as all you need to do is use the model to explain a hypothesis. But you are welcome to do a comparison if you find that useful.

Reference no: EM131346098

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