Suppose that this year, the economy is operating at point A, but then an earthquake destroys more capital than is being produced during the year. On the following graph, the PPC that best describes the Barnstead economy next year is . (Note: PPC1

PPC

1

and PPC2

PPC

2

are the same as on the previous graph.)

CAPITAL GOODS

CONSUMER GOODS

PPC

1

PPC

2

PPC

3

PPC

4

PPC

5