Question: True or False and briefly justify the answer. In the specific factors model, a 5% increase in the price of food accompanied by a 0%
True or False and briefly justify the answer.
In the specific factors model, a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to increase by less than 5%, the productions of cloth to increase, and the production of food to remain unchanged.
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