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fr'9 -. -.-. -. -.-.', -. -. 'l' -. .-.-.-. r Consider an economyr in a shortrun situation, use the shortrun specicfactors model diagram below

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"fr"'9 -. -.-. -. -.-.', -. -. "'l' -. .-.-.-. r Consider an economyr in a shortrun situation, use the shortrun specicfactors model diagram below to answer the following questions. Assume that there are two countries [Home and Foreign] and two sectors (Manufacturing, M, and Agriculture, A} and also assume that Home has comparative advantage to make agricultural goods. Assume that land is specific to agriculture (laborintensive sector), and capital is specific to manufacturing, whereas labor is free to move between the two sectors. For this question, examine the impact of a decrease in the price of agricultural goods due to international trade. The diagram below is for the Home country. 0. i u. 1.... #14 Tl'win-mmi Phi-11 mum\" gonna-mm a. Show and explain the impact of the decrease in the price of agricultural goods on wage and employment in each sector. You need to show the effect on the diagram

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