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Consider the Heckscher-Ohlin model. Let the domestic economy be labour abundant and the foreign economy capital abundant. (5) a. Assume plague wipes out part of

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Consider the Heckscher-Ohlin model. Let the domestic economy be labour abundant and the foreign economy capital abundant.

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(5) a. Assume plague wipes out part of the domestic population. In the box diagram show the effect on the allocation of L to the domestic C sector. Assume initial prices of C and F are unchanged

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