Question

During the second world war, germany's factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect germany's production possibilities curve?

Answer 1

Germany’s PPF would have shifted inward, because the country’s decrease in labor, capital and other inputs would reduce their ability to produce output at every allocation of resources.

Answer 2

As World War II progressed, the ability of Germany to replenish its army peronnel and its armoured units started to decline.

As more and more men died on the field, there were simply not enough people to replace them.

As more and more tanks, airplanes and factories were destroyed, Germany could not keep up with production and was gradually declining in its ability to launch both an offensive attack or manage a proper defense.