Refer to the Scenario Above

Multiple Choice

Refer to the scenario above.Assume Industry Country relies more heavily on the use of capital and Farm Country relies more heavily on the use of labor in production.Holding labor constant,which country's output would be more negatively affected by a big storm that destroys large parts of the existing infrastructure?

A) Industry Country
B) Labor Country
C) Both countries equally
D) Both countries equally if their initial GDP is equal