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(Solved): A Chinese car company invests in a new production facility in South Africa. Assuming South Africa p ...



A Chinese car company invests in a new production facility in South Africa. Assuming South Africa produces cars and minerals. Both industries use capital and labour. Assume there is no other contemporary shock. Which of the following statements is true? In the short run, workers have a higher purchasing power. In the long run, the change in real wage is ambiguous. In the long run, the output of both cars and minerals will increase. In the short run, capital owners are better off.



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