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I'm not sure I agree that the production capacity of the economy is fixed. It's heavily dependent on the value of that production.
by nightski 5y ago
I'm not sure I agree that the production capacity of the economy is fixed. It's heavily dependent on the value of that production.
- gruez 5y agoJust because something is high value and resources from lower valued production can be diverted into them, doesn't mean that the production capacity of the economy as a whole isn't fixed. At the end of the day there's still only so many people available to do stuff, and so many machines/raw materials available.