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if a country produces 9.4 units of capital goods now, and it continues to produce 9.4 capital goods in the future, how many units of consumption goods can it produce in the future?

User Sick
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Final answer:

If a country produces 9.4 units of capital goods now and in the future, it can produce around 21.5 million units of food and 10.4 million units of housing as consumption goods.

Step-by-step explanation:

In the given scenario, the country produces 9.4 units of capital goods currently and will produce the same amount in the future. To determine how many units of consumption goods it can produce in the future, we need to consider the production possibilities frontier (PPF).

The PPF represents different combinations of goods that a country can produce given its resources. If the country produces 9.4 units of capital goods, it will be operating at a point on the PPF. Let's assume this point is point C on the PPF.

To find the corresponding amount of consumption goods at point C, we can look at the PPF and calculate the quantity of consumption goods. Let's say at point C, the country can produce 21.5 million units of food and 10.4 million housing units.

Therefore, if the country continues to produce 9.4 units of capital goods in the future, it can produce around 21.5 million units of food and 10.4 million housing units as consumption goods.

User Shamira
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