Suppose you are in the Marvel Cinematic Universe at the end of the movie Avengers: Infinity Wars. Half the population of the world has been eliminated with a snap of Thanos' fingers (aka the elimination). Assume that you are asked to advise the leaders of Springfield, a small land-locked Asian nation. Springfield's immediate neighbors are South Korea, Russia, Turkey, India and China. Prior to the elimination, Springfield had a small population, with lots of mineral resources and a few very specialized pieces of manufacturing equipment. Springfield's primary exports are iron, copper, bauxite (the source of aluminum) and aiglets (the little plastic things on the end of shoelaces).

1.Suppose that Springfield's loss of half its population disproportionately affected their low-skilled worker population.

a.How would this affect Springfield's intertemporal PPF, intertemporal trade and the interest rate? Include a graph in your answer.

b. Suppose that Springfield's comparative advantage in aiglet production is largely due to external economies of scale. Discuss the different types of external economies of scale and how they would be affected by the elimination?