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Use the same information as given in question 1. a. Graphically show the equilibrium using a PPF and community indifference curve. b. Now, suppose this
Use the same information as given in question 1. a. Graphically show the equilibrium using a PPF and community indifference curve. b. Now, suppose this nation experiences neutral technological progress in the capital-intensive industry. Show this effect in the same diagram and include the new equilibrium. Assume this country is a large nation and that this growth increased wellbeing in this large nation. c. Explain the effect of this growth on exports, imports, and the relative price of capital-intensive good
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