Question: i. Fill in the table below assuming that, 10 years later, the output potential of capital goods has increased by 50%, while the output potential


i. Fill in the table below assuming that, 10 years later, the output potential of capital goods has increased by 50%, while the output potential for consumer goods has risen by 6 units for each combination A through D. A2 B2 C2 D2 E2 Capital Goods 0 12 21 27 30 Consumer goods 46 42 36 22 O j. Show the new PPC after the output potential of capital and consumer goods has risen. Use the tool PP2 in the graph above to draw the new PPC after the output potential has risen. k. As a result of the economic growth, can New Harmony now produce 24 capital goods and 26 consumer goods? New Harmony |might be |able to produce this combination of goods. I. All of the following, except one, are reasons for the shift from PP1 to PP2. Which is the exception? Increased resources O Improved technology Increased real interest rate O Improved resources
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
