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In an economy, there are two goods, x and y, which are produced by capital and labour. one unit of labour can produce either 2
In an economy, there are two goods, x and y, which are produced by capital and labour. one unit of labour can produce either 2 units of x and 1 unit of y (or any linear combination of them). one unit of capital can produce either 1 units of x and 2 units of y (or any linear combination of them). there are 100 units of capital and 100 units of labour. when the economy is producing 70 units of x there is bound to be unemployment and thus, inefficiency. true or false, explain
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