Question: Country 1 produces good X, and country 2 produces good Y. People in both countries begin to demand more of good X and less of

Country 1 produces good X, and country 2 produces good Y. People in both countries begin to demand more of good X and less of good Y. Assume that there is no labor mobility between the two countries and that a flexible system exists. What will happen to the unemployment rate in country 2? Explain.

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