Question
Country A has 8000 units of labor available. Country A can produce 1 unit X using 10 units of labor. Country A can produce 1
Country A has 8000 units of labor available. Country A can produce 1 unit X using 10 units of labor. Country A can produce 1 unit Y using 5 units of labor.
What is the opportunity cost of producing X in Country A?
What is the opportunity cost of producing Y in Country A?
Graph country A's production possibility frontier.
If in autarky, consumption of good Y in country A = 600, how much consumption of good X in country A ?
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
