2. Country 1 produces good X, and country 2 produces good Y. People in both countries begin...
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2. Country 1 produces good X, and country 2 produces good Y. People in both countries begin to demand more of good X and less of good Y. Assume that there is no labor mobility between the two countries and that a flexible exchange rate system exists. What will happen to the unemployment rate in country 2? Explain your answer.
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