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Suppose a country's production function can be represented by a Cobb-Douglas. Also suppose the country's labor (N) decreases in a year while its physical capital
Suppose a country's production function can be represented by a Cobb-Douglas. Also suppose the country's labor (N) decreases in a year while its physical capital stock and total factor productivity remains constant. The decrease in the country's labor would result in the following change in the graph of the production function where output is plotted on the yaxis and capital is plotted on the x-axis (9 A leftward movement along the production function 0 A rightward movement along the production function O A downward shift of the entire production function 0 An upward shift of the entire production function
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