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Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce only one good: good X. Production in both countries is a function
Scenario: Farm Country and Industry Country are two neighboring countries. Both countries produce only one good: good X. Production in both countries is a function of total efficiency units of labor and physical capital stock. Refer to the scenario above. The aggregate production functions will shift upward when ________ produce(s) a higher output. a higher amount of capital and labor the same amount of labor and a higher amount of capital the same amount of capital and labor the same amount of capital and a higher amount of labor
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