Question:

If an economy experiences an increase in its labor force, everything else constant, then at constant ?

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If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will ?

a. produce the same amount of both goods.

b. produce less of the labor intensive good and more of the capital intensive good.

c. produce more of the labor intensive good and less of the capital intensive good.

d. produce more of both goods.

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  1. D. Produce more of both goods.

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