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Intermediate Production Possibilities Analysis Answer the following True. False questions based on this gure. Panel A Panel B Production Possibilities 1995 Production Possibilltlos 2000 Investment
Intermediate Production Possibilities Analysis Answer the following True. False questions based on this gure. Panel A Panel B Production Possibilities 1995 Production Possibilltlos 2000 Investment 500d: Consumer Goods 0 Consumer Goods If present consumption \"ere higher than the level of consumption at point a, the future PP? would lie inside PPFa. PPFe eculd be reached by the year 2000 if the current intesunent-consumption choice is paint c. Successful government policies to increase current saTings could more the 1995 economy from a point like I: to a paint like c. The more successful a savings policy the lower the future expected growth. Shifting more resources to the production ofcapital goods in 1996 causes the 1995 PPF to shift outward. The gure implies that the opportunity cost ofhigher future growth is less current consumption
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