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20 Nov 2019
Suppose now that Canada experiences biased growth in capital, meaning both factors grow, but capital grows faster than land. Assuming the large country case: b. Canada P1 C1 automobiles i. Draw the new PPF to reflect this growth and a plausible new international terms of trade (t3), production (P3), consumption (C3) and trade triangle. ii. Explain your results carefully. Does Canada experience an improvement or deterioration of their terms of trade? Explain how you know.
Suppose now that Canada experiences biased growth in capital, meaning both factors grow, but capital grows faster than land. Assuming the large country case: b. Canada P1 C1 automobiles i. Draw the new PPF to reflect this growth and a plausible new international terms of trade (t3), production (P3), consumption (C3) and trade triangle. ii. Explain your results carefully. Does Canada experience an improvement or deterioration of their terms of trade? Explain how you know.
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Patrina SchowalterLv2
19 Jul 2019
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