Illustrate the effect of capital formatin production curves

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Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing toincreased consumer surplus and reduction in inflationary pressures?

Illustrate the effect of capital formatin by comparing the production possibility curves, at the present time and ten years in the future, for two economies, one with a high and the other with a low rate of capital formation.

 

Reference no: EM1351262

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