Friday, September 6, 2019

PPG

PPG 


Image result for production possibilities graph
  • PPG'S- Production Possibilities Graph: Alternative way to use a resource 
  • PPC- Curve 
  • PPF- Frontier 


  • Inside the curve: Point A- Recession, unemployment, Underemployment
  • On the curve: Point D
  • Outside the curve: Point X- Economic growth, technology 







  • Point A- Attainable but Inefficient 
  • Point D- Attainable and Efficient 
  • Point X- unattainable 
  1. Key Assumptions 
  • Two goods are produced 
  • Fixed resources 
  • Fixed Technology 
  • Full Employment : 4 to 5% unemployment
  • No International Trade 









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