Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce only one good: good X. Production in both countries is a function of total efficiency units of labor and physical capital stock. The aggregate production functions will shift upward when produce(s) a higher output. A. the same amount of labor and a higher amount of capital B. the same amount of capital and a higher amount of labor C. a higher amount of capital and labor D. the same amount of capital and labor
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Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce on...
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