Problem
What were some of the reasons for the decline in the import-substituting industrializa-tion strategy in favor of a strategy that promotes open trade? Suppose that the demand for labor in manufactured goods is equal to I00 - La and that the demand for labor in agriculture is equal to 80 - LA. There are 100 workers in the economy.
a. What is the equilibrium wage?
b. What is the loss in national income if the manufacturing wage is set at 50. but there is full employment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.