An economy produces capital and consumer goods. Discuss the impact on the PPF due to the following: (a) The discovery of a new source of oil (b) The unemployment rate in the economy has decreased by 5% (c) Improved technology that impacts only the production of capital goods.

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter2: Production Possibilities Frontier Framework
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An economy produces capital and consumer goods. Discuss the impact on the PPF due to the following:

(a) The discovery of a new source of oil

(b) The unemployment rate in the economy has decreased by 5%

(c) Improved technology that impacts only the production of capital goods.

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