Question: Consider a decrease in the labor supply of a country due to emigration. Assume the country is labor abundant. Use the long-run model. Draw diagrams

Consider a decrease in the labor supply of a country due to emigration. Assume the country is labor abundant. Use the long-run model. Draw diagrams similar to Figure 5- 10 and 5-11 in the text. Show how the amount of labor and capital is determined in each industry without any change in factor prices. Explain how the allocation of labor and capital has changed in each industry as well as the change in each industry's output. (25 pts)

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