Agraria specializes in the production of cotton. However, cotton manufacturers in Agraria are expecting the demand for its exports to fall sharply due to growing competition from a neighboring country
Assuming all else equal, which of the following is likely to happen in this case?
A) The equilibrium unemployment in Agraria will fall.
B) The equilibrium real wage in Agraria will rise.
C) Investment expenditure in Agraria will rise.
D) Consumption expenditure in Agraria will fall.
D
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?Kites /hourSnowboards /hourJesse81April123
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