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Explain the effects of a country's ppc if it is producing more than its net capital consumption

User Ahmed Aman
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Answer:

Economic growth occurs when an economy's production at the full employment level increases. An increase in the production at the full employment level is shown by an outward shift of production possibility frontier.

The shape of the PPC signifies that the resources needed to produce the two goods are interchangeable. The same resources are needed to produce the two goods, so the opportunity cost is constant as output of each good increases. This makes the PPC a straight line.

User Vamoss
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