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Business, 27.10.2020 16:30 deanaprettelt7444
A) Country X takes one hour to produce a unit of consumer goods and two hours to produce a unit of capital goods. Country Y takes two hours to produce a unit of consumer goods and four hours to produce a unit of capital goods. Which country has a comparative advantage in the production of consumer goods? Explain.
(the chart for country x is in the files)
b)Calculate the unemployment rate in Country X. Show your work.
c) Calculate the labor force participation rate in Country X. Show your work
d) Draw a correctly labeled graph of the production possibilities curve for Country X, with consumer goods on the horizontal axis and capital goods on the vertical axis. Indicate a point on your graph, labeled Z, that reflects the current level of unemployment.
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