1.2. Country 1 produces good X and country 2 produces good Y. People in both countries begin...

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1.2. Country 1 produces good X and country 2 produces good Y. People in both countries begin to demand more of good X and less of good Y. Assume there is no labor mobility between the two countries and that a flexible exchange rate system exists. What will happen to the unemployment rate in country 2? Explain your answer.

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Economics

ISBN: 978-0324538014

8th Edition

Authors: Roger A Arnold

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