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by netcan
4258 days ago
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r = return on capital. g = overall economic growth. If capital returns 6% this year and the economy grows b 4%, it means that capital + this year's return grew by more than the economy did overall. This leaves a smaller share for labour. But I'd like to have a better understanding of the year over year mechanics. Anyone have a good explanation. I'm willing to put in some effort. |
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