Question
Suppose that 2 hours labor and 2 units capital are required to produce 1 yard of cloth in Australia, while 1 hour labor and 3
Suppose that 2 hours labor and 2 units capital are required to produce 1 yard of cloth in Australia, while 1 hour labor and 3 units capital required to produce 1 pound of food in Australia. Australia has a total of 2,000 labor and 3,000 capital.
What is Australia's capital constraint?
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
