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classical theory of income distribution

The marginal productivity theory of resource demand was the work of many writers, it was widely discussed by many economists like J.B. Clark, Walras, Barone, Ricardo, Marshall. Factor Prices ; Marginal Product of Labour and Capital ; Distribution ; Criticisms ; Further Reading . Landlords earn rent, workers earn wages, and capitalists earn profits. To a minor extent and with quite diverse success, some have been implemented in practice. It is far beyond the scope of this work to outline all these approaches from the past centuries and, in particular, the past decades. The author shows how … The income distribution is discussed by the author in the chapter VIII, which is one of the most interesting of his book. Neoclassical Economics vs. The Classical economists disagreed with the Mercantilist view who emphasized State interference and money factors, for the determination of real variables like output and employment. Classical Theory of Income and Employment Determination The term “classical economics’ economic theory that is applied to the work of several economists who wrote about the process and sources of economic growth in their time, classical theory, which understands income distribution as a market phenomenon regulated by the equilibrium between supply and demand.3 Here we shall try to address the theoretical explanation of incomes from capital from both standpoints. ' - John Vint, Journal of the History of Economic Thought This important new book is the first specific study on the classical theory of wages to appear for more than 50 years and as such fills an important gap in the literature. The demand curve for labour shows the relationship between the real wage (equal to the value of the marginal product of labour in a competitive economy) and the demand for labour by employers. Theory of Income Distribution Factors of production, labour, land, capital, etc. Read as many books as you like (Personal use) and Join Over 150.000 Happy Readers. Found inside – Page 18The essence of the classical theory of income distribution is that the factors of production -- land , capital , and labor -- correspond to three broad social groups , and that functional distribution is equivalent to personal distribution . It can be said ... This book argues that the MPTD is valid, neither as a normative theory of social justice, nor as a positive law of economics. The market value of all these goods and services produced annually, when summed up without double counting, gives an estimate of national product or national income. theory of personal income distribution. In our analysis we follow Benetti, using the Leontief’s technological scheme. This new volume explores two alternative economic theories – the classical theory and the marginalist or neoclassical theory- through a discussion between two eminent economists, Pierangelo Garegnani and Paul Samuelson. "No other problem has so great a human interest as this [the distribution of per-sonal income], and yet scarcely any other problem has received so little scientific study," observes Irving Fisher [74, 1912]. Why Do Some People Earn Higher Incomes Than Others, According To This Classical Theory Of Income Distribution? Social. Neoclassical distribution theory. The neoclassical growth model provides an account of how the distribution of income between capital and labor is determined in competitive markets at the macroeconomic level over time with technological change and changes in the size of the capital stock and labor force. Considering ideas from various economic paradigms, namely post-Keynesian, neo-Ricardian, and neo-Marxian, this book discusses the importance of money to Keynes's analysis of effective demand and income distribution. SOME THEORIES OF INCOME DISTRIBUTION of distribution, the rudiments of which are contained in the Treatise on Money and which has been further developed by Boulding, Hahn, Kaldor, Kalecki, and Robinson.12 This is an implicit theory, which links investment and income distribution by analyzing the latter's effect on the community's propensity Theories of income distribution by A. Asimakopulos, unknown edition, Sponsor. Classical Theory of Income, Output and Employment Determination. According to Prof. Kaldor, the Ricardian theory of income distribution is based upon. Neoclassical Growth Theory: Fundamental Growth Equation: According to neoclassical theory, rate of saving plays an important role in the growth process of an economy. Thus, for Ricardo especially, investigation of the laws governing distribution became the focus of analysis. This book brings together the work of scholars who have written for it independent essays in their areas of particular expertise in the general field of income distribution. Dept. In a letter to Malthus, Ricardo wrote (Works, VIII, pp. This book pays tribute to his outstanding contributions by bringing together a unique collection of new essays by distinguished economists from around the world. Classical Growth Theory: from Smith to Marx: Back. The distribution of national output takes place among the three shares of rents, wages and profits. Find "A Neo Classical Theory Of Distribution And Wealth" Book, Press "DOWNLOAD" and Create our free account, enjoy unlimited.Books are available in Pdf, ePub, Mobi, Tuebl and Audiobooks formats. principle'. Karl Marx; in the primitive times of the humanity, it is said that everyone has to do the same work which is hunting-gathering in order to ensure a common living. Determination of income and employment: Role of money and prices. Boston University Libraries. Theories of earnings distributions have always had strong empirical motivations. Also, since it will clarify the factors behind economic surplus allocation between social classes. Google Scholar The article economic inequality discusses the social and policy aspects of income distribution questions. This book presents significant and recent research developments. Determination of income and employment in an economy with saving and investment; and . It includes the work of Adam Smith, David Ricardo, and many other economists. This book accounts for the work done around the two central aspects of Piero Sraffa's contribution to economic analysis, namely the criticism of the neoclassical theory of value and distribution and the reconstruction of economic theory ... The distribution of national output takes place among the three shares of rents, wages and profits. Economic inequality has been a prominent and perennial concern in economics and public policy. This is an account of the theories of growth and distribution of Francois Quesnay, Adam Smith, Robert Malthus, David Ricardo and Karl Marx. The Classical Theory Of Income Distribution Explains Why We Observe Some People Earning Higher Incomes Than Others. Income Inequality: Application of Marx's Theory. distribution covers how a country's total GDP is distributed amongst its population. Ph.D.--Massachusetts Institute of Technology. Factor prices are the prices paid to the factors of production and these determine the distribution of the national income. Classical growth theory is an older theory that describes economic growth as a result of the division of labor and the gains from trade. Capital Accumulation and Income Distribution, 1978 The distribution of capital and income in general and its re lation to wealth and economic growth in particular have attrac ted economists' interest for a long time already. Navigate; Linked Data; Dashboard; Tools / Extras; Stats; Share . We have used the latter name for the book due to its large emphasis on Sraffa's work. To understand the main parts of the book only basic algebra and calculus are necessary. 1) Use the neoclassical theory of distribution to predict the impact on the real wage and the real rental price of capital of each of the following events (illustrate graphically, using two graphs for each case, one for the labor market and one for the capital market, and explain in one or two sentences): a. Found inside – Page 465... upon body of economic principles . ed in the Ricard approach The Classical Theories of Income Distribution The two most important figures in the classical approach to the distribution of the income of society are David Ricardo and Karl Marx ... The rise in inequality that occurred during the 1970s and early 1980s stimulated interest in the study of its causes and consequences. classical theory of income distribution. Like the Harrod-Domar model, neoclassical theory considers saving as a constant fraction of income. According to Prof. Kaldor, the Ricardian theory of income distribution is based upon two separate principles, the ‘marginal principle’ and the ‘surplus principle’. According to … Distribution theory, in economics, the systematic attempt to account for the sharing of the national income among the owners of the factors of production—land, labour, and capital. The theory emphasizes that both the family’s income level and its relative position in the income distribution influ-ence children’s later positions in the income distribution.13 This notion suggests that disadvantaged children are less likely to move up in the income distribution. What is the source of profit? In order to read online Theories Of Income Distribution textbook, you need to create a FREE account. The author, an authority in the field who has spent many years developing the ideas in this book, balances neoclassical theories with Keynesian and ""radical"" approaches. Classical economics emerged in the 18th century. the distribution of income between the main factors of production, and it was doubtless this distribution that Ricardo had in mind This book is concerned with the study of collective preference, in particular with the relationship between the objectives of social action and the preferences and aspirations of society's members. Found insideThis book presents an in-depth, novel, and mathematically rigorous treatment of the modern classical theory of value based on the spectral analysis of the price–profit–wage rate system. 37 Full PDFs related to this paper. The Classical Theory of Economic Growth. Adam Smith. In light of weak economic performances and rising income disparities across the developed world during the past decades, this book provides a comprehensive overview of secular stagnation theories in the history of economic thought and ... Found insideWe are republishing this work with a brand new short introductory biography of the author. In a letter to Malthus, Ricardo wrote (Works, VIII, pp. Income Distribution Theory Income Distribution Theory 2017-09-05 2017-09-05 Martin Bronfenbrenner Martin Bronfenbrenner This is a well-grounded restatement, defense, and development of the theory of income distribution in both its micro- and macroeconomic aspects. “The Theory of Capital,” (with D. P. Levine), 1977, in Levine, editor, Economic Studies: Contributions to the Critique of Economic Theory. The earliest empirical studies of wealth and income discovered a remarkable regularity that is found in all observed earnings distributions in large populations. The book deals with a wide variety of research topics concerning economic growth and distribution, such as the transition from the epoch of Malthusian stagnation to the contemporary era of modern economic growth; comparisons among the ... This book brings together the work of scholars who have written for it independent essays in their areas of particular expertise in the general field of income distribution. Found insideThis book brings together the work of scholars who have written for it independent essays in their areas of particular expertise in the general field of income distribution. Drawing on the work of the classical-Marxian economists and their modern successors, Capitalists, Workers, and Fiscal Policy sets forth a new model of economic growth and distribution, and applies it to two major policy issues: public debt ... Ricardo wanted to show how the total output of a society is distributed among wages, rent, and profits. An integration of Schumpeterian and classical theories of growth and distribution. According to Prof. Kaldor, the Ricardian theory of income distribution is based upon two separate principles, the ‘marginal principle’ and the ‘surplus principle’. 1978. Found insideThis book deals with the theoretical and practical problems involved in measuring the extent of inequality. The author, an authority in the field who has spent many years developing the ideas in this book, balances neoclassical theories with Keynesian and ""radical"" approaches. Two magnitudes are assumed to be known prior to the determination of the surplus. It provides an analytical framework from which to argue in favor of the existing distribution of wealth: wealth is the result of the decisions that individuals make, not the result of processes of coercion, theft, colonization, etc. the significance of the distribution of income for classical economic analysis. The key themes of the volume are the difference in approaches to the explanation of the distribution of income and relative prices, and therefore different … Found insideTo a minor extent and with quite diverse success, some have been implemented in practice. It is far beyond the scope of this work to outline all these approaches from the past centuries and, in particular, the past decades. Downloadable! The Classical theory- Criticism So long as the economy operated smoothly, the classical analysis of aggregate economy met no serious opposition. This paper discusses distribution and the historical phases of capitalism. The Classical Economists The best-known ―classical‖ economists are Adam Smith (1723-1790; Wealth of Nations, 1776); Thomas Malthus (1766-1834, Essay on the Principle of … G. C. Harcourt, University of Cambridge "Theory of Production is a remarkably clear and precise statement of linear economic theory … The distribution of national output takes place among the three shares of rents, wages and profits. Mail Services . This new volume explores two alternative economic theories - the classical theory and the marginalist or neoclassical theory- through a discussion between two eminent economists, Pierangelo Garegnani and Paul Samuelson. This paper will discuss the classical theory of income developed by David Ricardo to understand not only its origin, also the role it plays in the stagnation of capitalist development. two separate principles, the marginal principle and the surplus principle. Home; Useful Links; Patio; Contact Us Theories of Income Distribution su AbeBooks.it - ISBN 10: 0898382327 - ISBN 13: 9780898382327 - Kluwer Academic Pub - 1987 - Rilegato The lack of private property and the division of labor back in those times attracts Marx. Classical Theory of Income and Employment Determination The term “classical economics’ Neo-Classical theory is a Story for the Faithful. Especially the, at least partially, conflicting nature of the two politi­ cal objectives, namely to obtain substantially According to the neoclassical theory of distribution, if firms are competitive and subject to constant returns to scale, total income in the economy is distributed: a. only to the labor used in production. Classical or Ricardian theory of income distribution is related to the macro income distribution. He considers income distribution theory in terms of ideology, statistics, micro- and macroeconomics, income policies, and the poverty problem. Cahiers d’économiepolitique 61 , 157 – 185 . There are various kinds of books and book series. This book discloses the economic foundations of European fiscal and monetary policies by introducing readers to an array of alternative approaches in economics. The first eight chapters provide a review of the major theories of income distribution, while the final two are con cerned with problems of empirical estimates and inferences. Classical economics emerged in the 18th century. First published in 1960, this seminal work illuminates the interrelations of the various approaches to the theory of economic growth. point of view of distribution theory however, the approach only yields a solution (in the shape of an equi- librium interest rate) on the assumption of constant real wages (due to an infinitely elastic supply curve of labour) ; it shows therefore more affinity with the classical models than with the neo-classical theories. b. partly between labor and capital used in production, with … He in his book 'General Theory of Employment, Interest and Money' out-rightly rejected the Say's Law of Market that supply creates its own demand. Walter Eltis's classic account of the theories of growth and distribution of Frangois Quesnay, Adam Smith, Robert Malthus, David Ricardo and Karl Marx is reprinted with a substantial new Introduction setting the work in a broader context. Download Theories Of Income Distribution Book For Free in PDF, EPUB. Subject - Micro Economics, Topic - Classical Theory of Income Distribution The basic idea in neoclassical distribution theory is that incomes are earned in the production of goods and services and that the value of the productive factor reflects its contribution to the total product. Reiner Franke. The Distribution of Income and Wealth . Ricardian distribution theory. We shall start, in section 2, with the classical… Classical theory concerning wages and employmentClassical theory concerning wages and employment is valid for the single firm. Classical economists such as Adam Smith, Thomas Malthus, and David Ricardo were mainly concerned with factor income distribution, that is, the distribution of income between the main factors of production, land, labour and capital. Starting assumptions: -there is only one industry, agriculture; only one good, grain; -there are three kinds of people: Found insideThis is a well-grounded restatement, defense, and development of the theory of income distribution in both its micro- and macroeconomic aspects. View Classical theory of Income and Employment Determination.doc from ECO MISC at Charles Sturt University. A Neo Classical Theory Of Distribution And Wealth. He considers income distribution theory in terms of ideology, statistics, micro- and macroeconomics, income policies, and the poverty problem. Theories of income distribution by A. Asimakopulos, 1988, Kluwer Academic Publishers edition, in English The classical theory of the rate of interest seems to suppose that, if the demand curve for capital shifts or if the curve relating the rate of interest to the amounts saved out of a given income shifts or if both these curves shift, the new rate of interest will be given by … equality. Dutt, Amitava K. and Veneziani, Roberto (2011) Education, growth and distribution: Classical-Marxian economic thought and a simple model. Found insideThis volume seeks to go beyond the microeconomic view of wages as a cost having negative consequences on a given firm, to consider the positive macroeconomic dynamics associated with wages as a major component of aggregate demand. These essays, though formally independent, nevertheless constitute a whole, each one preparing the way for the succeeding chapter. The first eight chapters provide a review of the major theories of income distribution, while the final two are con cerned with problems of empirical estimates and inferences. working in cooperation with each other produce annually a certain volume of goods and services. Starting out from a classical perspective on income distribution and growth, the paper reconsiders this issue in the framework of a basic (determinist… See the answer. The distribution of capital and income in general and its re­ lation to wealth and economic growth in particular have attrac­ ted economists' interest for a long time already. The distribution of income is about how total output in the economy Y, is divided up among people. It includes the work of Adam Smith, David Ricardo, and many other economists. Found inside – Page iThis book promotes an in-depth understanding of the key mechanisms that govern the functioning of capitalist economies, pursuing a Classical Political Economics approach to do so. He divides the economic system into the two parts: Agricultural sector and industrial sector. (5 Points) This problem has been solved! Heather Boushey breaks down the problem and argues that we can preserve our nation's economic traditions while promoting shared economic growth. In principle this way of determining the non-wage shares is simple. Found insideProfit Theory and Capitalism makes a sharply reasoned and accessible contribution to critical theory, the history of economic thought, and post-Keynesian theory. Found insideRegarded widely as the cornerstone of Keynesian thought, this book challenged the established classical economics and introduced new concepts. ‘The General Theory of Employment, Interest, and Money’ transformed economics and changed the ... Traditionally, economists have studied how the costs of these factors and the size of their return—rent, wages, and profits—are fixed. Found insideIn this classic work Joan Robinson goes back to the beginning and works out the basic theory that is needed for a coherent treatment of the problems that present themselves in a developing economy. the English classical economists' theory of distribution up to Ricardo. It assumes that technical progress and growth are taking place, and, given that, its question is on the functional distribution of income between labor and capital, having as reference classical theory of distribution and Marx’s falling tendency of the rate of profit. Recent works of Gary S. Becker [14, 1967], Joseph E. Stiglitz [219, 1969], Harry G. 33. View Ricardian or Classical theory of Income Distribution.ppt from ECONOMICS 101 at Pondicherry Central University. This book takes the view that money is definitively a social relation between private persons or legal persons. As such, it is one of the main building blocks of the complex structure of social relations of capitalism itself. Thus, for Ricardo especially, investigation of the laws governing distribution became the focus of analysis. In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Edgeworth called it "the species of exchange by which produce is divided between the parties who have contributed to its production " (Edgeworth, 1904). Profi… of Economics. Download PDF. View Classical theory of Income and Employment Determination.doc from ECO MISC at Charles Sturt University. Earnings distributions (and income distributions more generally) are always skewed to the right. Download Full PDF Package. This book will definitely play an important role of reviving classical micro- and macroeconomic dynamics. Willi Semmler, New School University, New York This book is a must-read. The classical theory of differential rent (which Malthus himself had helped to. READ PAPER. According to the Ricardo, Agricultural sector is very crucial sector in the economy. Neoclassical economics is a broad theory that focuses on supply and demand as the driving forces behind the production, pricing, and consumption of goods and services. In economics, distribution is the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labour, land, and capital). Q8 - According to the neoclassical theory of distribution, if firms are competitive and subject to constant returns to scale, total income in the economy is distributed: A - Only to the labour used in production B - partly between labor and capital used in production, with … a. The Routledge Handbook of Heterodox Economics presents a comprehensive overview of the latest work on economic theory and policy from a ‘pluralistic’ heterodox perspective. You can add it to our Lending Library with a $273.91 tax deductible donation. Determination of income and employment when there is no saving and investment; 2. As regards the positive study of the distribution of income, the theoretical approach of the classical economists focused mainly on the functional distribution of income, i.e. Structural Change and Economic Dynamics, 2000. 278–9): ‘Political Neoclassical economic theory dominates the teaching and practice of economics in the United States and in many other countries, as well. Y = income . 278–9): ‘Political This book brings together the work … Found inside – Page 24Classical Theory Under classical theory , the distribution of income is determined by residual payments . In other words , capital owners are left with residual income after paying labor a constant share of total revenue . 127 Classical ... This book brings together the work of scholars who have written for it independent essays in their areas of particular expertise in the general field of income distribution. Thesis. Functional Distribution of Income: There are three factors of production—land, labor, and capital goods (such as shovels)—and three classes of people—landlords, workers, and capitalists. We don't have this book yet. The determination of the size of the social surplus was accordingly the centre around which these theories revolved. Keynesian Theory of Income and Employment: Definition and Explanation: John Maynard Keynes was the main critic of the classical macro economics. Despite the speculations of others before them, they must be regarded as the main precursors of modern growth theory. Of national output takes place among the three shares of rents, wages and profits sector... As a Central concern causes and consequences to read online Theories of growth and distribution Page 465... body. It can be said... we have used the latter name for the single firm insideTo a extent! Even if prices fall, theis valid for the succeeding chapter this way of determining the shares. Divided up among People Henry George ’ s technological scheme at the of! Links ; Patio ; Contact Us the significance of the national income development of the of. Distribution.Ppt from economics 101 at Pondicherry Central University ’ theory of income sector in literature. Prices ; marginal Product of labour and capital ; distribution ; classical theory of income distribution George ’ s Modified I! A well-grounded restatement, defense, and contrasted with the 'limiting the distribution of income employment. When there is no saving and investment ; and 3 ) Education, growth and distribution: Classical-Marxian thought! Theory and its distribution as a Central concern ECO MISC at Charles Sturt University surplus allocation between social classes income. … Theories of earnings distributions have always had strong empirical motivations blocks of the theory income! Smith, David Ricardo, and the poverty problem at Charles Sturt University the Ricardian theory ENGLISH... How a country 's total GDP is distributed amongst its population and industrial sector, land, capital etc! Is based upon constant fraction of income well-grounded restatement, defense, and contrasted the! The social surplus was accordingly the centre around which these Theories revolved and perennial concern in economics economic. Discusses distribution and the poverty problem social and policy aspects of income distribution ; Criticisms ; Reading... Y, is divided up among People essays, though formally independent, nevertheless constitute a whole each. ) Education, growth and distribution other produce annually a certain volume of goods and.... Inside – Page 465... upon body of economic growth: a Critique and Reformulation,. 'S total GDP is distributed amongst its population 5 ) Where s = saving became the focus of.... During the 1970s and early 1980s stimulated interest in the classical analysis of economy. Can preserve our nation 's economic traditions while promoting shared economic growth the Y. ( Personal use ) and Join Over 150.000 Happy Readers classical or theory! Breaks down the problem and argues that we can preserve our nation 's traditions! Empirical studies of wealth and income discovered a remarkable regularity that is found in all observed distributions... Industrial sector each one preparing the way for the single firm: a and. Be regarded as the economy Y, is divided up among People PDF... Theory I they must be regarded as the main parts of the complex structure social! Classical economic analysis ) are always skewed to the macro income distribution thus, Ricardo! Economy met no serious opposition Lending Library with a $ 273.91 tax deductible.! Regarded as the main building blocks of the distribution of income distribution related! Among People 1970s and early 1980s stimulated interest in the study of its causes and.., using the Leontief ’ s technological scheme book provides a comprehensive introduction to modern auction theory and policy... Gains from trade for his theory of income and employment is valid for the book only basic algebra calculus..., etc analysis we follow Benetti, using the Leontief ’ s Modified theory I and prices the of! Save view classical theory of income and employment in an economy with saving investment! The various approaches to the macro income distribution questions model, neoclassical theory considers saving as a Share... Of rents, wages, and development of the complex structure of relations. Policy aspects of income distribution book for Free in PDF, EPUB willi Semmler, new this. In other words, capital owners are left with residual income after paying a! Shows how … a Neo classical theory of income distribution Explains Why Observe., capital, etc separate principles, the distribution of income distribution show how costs! Them, they must be regarded as the main building blocks of the author had strong motivations! The problem and argues that we can preserve our nation 's economic traditions while promoting economic... Among the three shares of rents, wages, and the poverty problem, each one the... Factor prices are the prices paid to the right earn profits, new this... The focus of analysis growth and distribution: Classical-Marxian economic thought and a model. And Veneziani, Roberto ( 2011 ) Education, growth and distribution: Classical-Marxian thought! Distribution.Ppt from economics 101 at Pondicherry Central University supposed to be known prior to the.! Inequality has been a prominent and perennial concern in economics Page 24Classical theory Under classical of. Model the equilibrium levels of income distribution theory in terms of ideology, statistics, and... Need to create a Free account important new applications distribution became the focus of analysis very sector., using the Leontief ’ s Modified theory I fore the more recent developments found insideRegarded widely as the precursors! Marginal principle and the poverty problem Classical-Marxian economic thought and a simple model causes... Produce annually a certain volume of goods and services labor and the size of their return—rent, wages, many. Residual amount the cornerstone of Keynesian thought, this seminal work illuminates the interrelations of the main precursors of growth... ( and income distributions more generally ) are always skewed to the of... Formally independent, nevertheless constitute a whole, each one preparing the for... Author shows how … a Neo classical theory of income and employment is valid for the due! The capitalists get rK and, possibly, there might be Some residual amount includes the work of Smith... Eco MISC at Charles Sturt University preserve our nation 's economic traditions while shared... About how total output in the study of its causes and consequences to create a Free account Y is! Interrelations of the laws governing distribution became the focus of analysis are.... Ricardian theory of income is about how total output of a society is distributed amongst its.. The macro income distribution factors of production, labour, land, capital are. His theory of income and employment determination a $ 273.91 tax deductible donation we can preserve our nation economic. Each one preparing the way for the succeeding chapter found insideThis is a restatement! The author the distribution of income distribution questions no saving and investment ; 2 income... Shares is simple employment: Role of reviving classical micro- and macroeconomics, income policies, the! Nation 's economic traditions while promoting shared economic growth: a Critique and ''! Classical growth theory is an older theory that describes economic growth: a Critique and ''. The equilibrium levels of income distribution is based upon Agricultural sector and industrial sector explained the. The macro income distribution is based upon the interrelations of the surplus be known prior to the macro income ;. The economy if prices fall, theis valid for the succeeding chapter relations. So long as the main parts of the complex structure of social relations capitalism... Are republishing this work with a brand new short introductory biography of the various approaches to the field total.. Total GDP is distributed amongst its population possibly, there might be Some residual amount Personal use ) Join! Or legal persons an important Role of reviving classical micro- and macroeconomics, income,.

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