Suppose there is an outflow of labour in a country, shifting its production possibility frontier inward. Everything else held constant, this shift will cause ___________________.

A. increases in outputs of both capital-intensive and labour-intensive goods.

B. decreases in outputs of both capital-intensive and labour-intensive goods.

C. a decrease in output of the capital-intensive good, and an increase in output of the labour- intensive good

D. an increase in output of the capital-intensive good, and a decrease in output of the labour- intensive good

E. an initial decrease, and then an increase in output of the labour-intensive good

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D an increase in output of the capitalintensive good and a ... View the full answer