# Adam Smith's Wealth Of The Nations Analysis

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The equation 2.6 is the result of dividing both sides of equation 2.6. According to the equation 2.6, Ricardo’s model depends on capital, labor, land, and technology with respect to time. Land supply is fixed and it is considered as a gift of nature. Ricardo’s view on population growth was similar to Malthus’ idea. He pointed out two wage rates; market wage rate (w) and natural wage rate (w ̅). Population will increase if the market wage rate is higher than the natural wage rate and other way. Productivity of land and socio-cultural environment determine the natural wage rate. Hence, it can be written as shown in equation