Here are the questions.
What will happen to the production possibility curve in each of the following?
1. The economy is in a recession. 10% of the labor force in unemployed.
happen if the rate of unemployment falls from 10% to 6%?
2. Suppose society produces two goods, capital goods and food. Suppose
there is a breakthrough in biogenetics which produces a new type of corn
that has more ears of
corn per stalk?
3. Suppose there is a war?
4. Suppose the society produces consumer goods and caital goods. What
if the level of education rises?