3. Consider an economy.r where government expenditures are 1D and total tax revenues are 10. The supply of labor is xed at L = 125 and the supply.r
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3. Consider an economy where government expenditures are 10 and total tax revenues are 10. The supply of labor is Öxed at L = 125 and the supply of capital is Öxed at K = 8. The economy is described by the following equations:
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