In the Dornbusch-Fischer-Samuelson model of Question #24 above, a uniform
Improvement in labor productivity in all of the ome country's industries would shift the A schedule __________ and would lead to the export of a __________ number of goods By the home country than the number exported before the productivity improvement.
A) upward and to the right; greater
B) upward and to the right; smaller
C). downward and to the left; greater
D) downward and to the left; smaller

Question

In the Dornbusch-Fischer-Samuelson model of Question #24 above, a uniform
Improvement in labor productivity in all of the  ome country's industries would shift the A schedule __________ and would lead to the export of a __________ number of goods By the home country than the number exported before the productivity improvement.
A) upward and to the right; greater
B) upward and to the right; smaller
C). downward and to the left; greater
D) downward and to the left; smaller

Quizplus · Accepted Answer

In the Dornbusch-Fischer-Samuelson model, an improvement in labor productivity would lead to a rightward shift in the production-possibility frontier (PPF) or schedule, indicating an increase in the amount of goods that can be produced. This increase in productivity would reduce the cost of producing goods in the home country, making them more competitive with foreign goods in the international market. As a result, the home country would export a greater number of goods than before the productivity improvement. Therefore, the correct answer is A, upward and to the right and greater.

In the Dornbusch-Fischer-Samuelson Model of Question #24 Above, a Uniform