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(Growth and the PPF) Use the production possibilities frontier (PPF) to demonstrate economic growth

(Growth and the PPF) Use the production possibilities frontier (PPF) to demonstrate economic growth
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ECONOMICS

MT445 / MT 445
Managerial Economics
Kaplan University (KU Campus)

William A. McEachern
Economics: A Contemporary Introduction, 8e
Hoboken, NJ: John Wiley & Sons.

Unit 8: Introduction to Macroeconomics, Productivity and Growth

Unit 8 Project
Chapter 20 – question 15, page 459
15. (Growth and the PPF) Use the production possibilities frontier (PPF) to demonstrate economic growth.
a. With consumption goods on one axis and capital goods on the other, show how the combination of goods selected this period affects the PPF in the next period.
b. Extend this comparison by choosing a different point on this period’s PPF and determining whether that combination leads to more or less growth over the next period.

 

FILE: MS WORD

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