You are given the following Dornbusch-Fischer-Samuelson (DFS) graph, where a₁ = the Labor-time needed per unit of output in any given industry in the home country, a₂ = the Labor-time needed per unit of output in any given industry in the foreign country, W₁ = The wage rate in the home country, and W₂= the wage rate in the foreign country. The Exchange rate e is assumed = 1.

FIGURE 1
In this Dornbusch-Fischer-Samuelson graph, moving to the right along the A line indicates goods in which the __________ country has greater relative efficiency; further, The introduction of technical progress in the foreign country would, other things equal, be Reflected in __________ shift of the curve.

Question

You are given the following Dornbusch-Fischer-Samuelson (DFS) graph, where a₁ = the Labor-time needed per unit of output in any given industry in the home country, a₂ = the Labor-time needed per unit of output in any given industry in the foreign country, W₁ = The wage rate in the home country, and W₂= the wage rate in the foreign country. The Exchange rate e is assumed = 1.

You are given the following Dornbusch-Fischer-Samuelson (DFS) graph, where a<sub>1</sub> = the Labor-time needed per unit of output in any given industry in the home country, a<sub>2</sub> = the Labor-time needed per unit of output in any given industry in the foreign country, W<sub>1</sub> = The wage rate in the home country, and W<sub>2 </sub>= the wage rate in the foreign country. The Exchange rate e is assumed = 1. FIGURE 1 In this Dornbusch-Fischer-Samuelson graph, moving to the right along the A line indicates goods in which the __________ country has greater relative efficiency; further, The introduction of technical progress in the foreign country would, other things equal, be Reflected in __________ shift of the curve. A) home; an upward B) home; a downward C) foreign; an upward D) foreign; a downward

FIGURE 1
In this Dornbusch-Fischer-Samuelson graph, moving to the right along the A line indicates goods in which the __________ country has greater relative efficiency; further, The introduction of technical progress in the foreign country would, other things equal, be Reflected in __________ shift of the curve.

Quizplus · Accepted Answer

The Answer of You are given the following Dornbusch-Fischer-Samuelson (DFS) graph, where a₁ = the Labor-time needed per unit of output in any given industry in the home country, a₂ = the Labor-time needed per unit of output in any given industry in the foreign country, W₁ = The wage rate in the home country, and W₂= the wage rate in the foreign country. The Exchange rate e is assumed = 1. FIGURE 1 In this Dornbusch-Fischer-Samuelson graph, moving to the right along the A line indicates goods in which the __________ country has greater relative efficiency; further, The introduction of technical progress in the foreign country would, other things equal, be Reflected in __________ shift of the curve. A) home; an upward B) home; a downward C) foreign; an upward D) foreign; a downward

You Are Given the Following Dornbusch-Fischer-Samuelson (DFS) Graph, Where A1

You Are Given the Following Dornbusch-Fischer-Samuelson (DFS) Graph, Where A₁