If, at constant relative prices in a two-commodity and two-factor world, growth in a country's labor force causes an expansion in output of the labor-intensive good and a contraction in output of the capital-intensive good, this situation is an example of the

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This is an example of the Rybczynski theorem, which states that an increase in a factor of production will cause an increase in output of the good that uses that factor intensively and a decrease in output of the other good. In this case, an increase in labor leads to an increase in output of the labor-intensive good and a decrease in output of the capital-intensive good.

If, at Constant Relative Prices in a Two-Commodity and Two-Factor