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Shifts in production possibilities Suppose Argentina produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa,
Shifts in production possibilities Suppose Argentina produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and locomotives, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation
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