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Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment,

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Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods. Suppose that Liechtenstein and Luxembourg currently have identical production possibilities frontiers but that Liechtenstein devotes only 5 percent of its resources to producing capital goods over each of the next 10 years, while Luxembourg devotes 30 percent. Which country is likely to experience more rapid economic growth in the future? Luxembourg 1.) Use the three-point curved drawing tool to Consumption goods illustrate Liechtenstein's PPF 10 years in the future. Label the PPF 'A future'. 2.) Use the three-point curved drawing tool to illustrate Luxembourg's PPF 10 years in the future. Label the PPF 'B future'. Carefully follow the instructions above, and only draw the required objects. PPFLiechtenstein = PPF Luxembourg Capital goods

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