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Consider the simple Harris-Todaro framework. What does it predict about how job creation in the modern sector without changing modern sector wage will change rural wage, the size of the labor force and the informal sector in cities? Draw a graph and explain in two or three sentences.
4. Consider the simple Han‘is-Todaro framework. What does it predict about how jobcreation in the modern sector without changing modern sector wage will changerural wage, the size of the labor force and the informal sector in cities? Draw agraph and explain in two or three sentences… (15 points)
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