I have attached my question in the form of an image. Kindly note that the question entails shifting the PPC curve. Please describe whether there will be an outward or inward shift on both ends. If there isn't an outward or inward shift, kindly describe which end shifts inwards and which end shifts outwards. I acknowledge that the question doesn't provide enough information to deduce a numerical quantity in terms of how much can or cannot be produced, but that is not needed. Only advise me as to which ends to shift upwards or downwards or the opposite if need be. The extent of their shift Is a negligible detail. Kindly proceed to the multiple-choice section afterward. Thank you. 7. Economic growthThe following graph shows the production possibilities curve (also known as the production possibilities frontier) of an economy that produces cars andcomputers. Suppose that a fall in this economy's saving rate results in a low level of private investment. Manufacturing plants crumble and aren'trepaired, and output drops.Adjust the production possibilities curve (PPC) to show the economy's new production possibilities after the fall in the saving rate.Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points willsnap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.24PPC16PPC1015QUANTITY OF COMPUTERS (Millions)Suppose society faces a broad tradeoff between allocating resources to the production of investment goods (computers) and consumption goods (cars)before the fall in the saving rate described above.Which of the following events would be most likely to lead to the fall in the saving rate you just illustrated?O Increasing production of investment and consumption goodsO Decreasing production of investment goods and increasing production of consumption goodsO Increasing production of investment goods and decreasing production of consumption goodsO Decreasing production of investment and consumption goodsQUANT IT Y OF CARS (MIlions)

A rise in the output leads to an outward shift of the PPF due to a rise in the production of two…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I have attached my question in the form of an image. Kindly note that the question entails shifting the PPC curve. Please describe whether there will be an outward or inward shift on both ends. If there isn't an outward or inward shift, kindly describe which end shifts inwards and which end shifts outwards. I acknowledge that the question doesn't provide enough information to deduce a numerical quantity in terms of how much can or cannot be produced, but that is not needed. Only advise me as to which ends to shift upwards or downwards or the opposite if need be. The extent of their shift Is a negligible detail.

Kindly proceed to the multiple-choice section afterward.

Thank you.

7. Economic growth
The following graph shows the production possibilities curve (also known as the production possibilities frontier) of an economy that produces cars and
computers. Suppose that a fall in this economy's saving rate results in a low level of private investment. Manufacturing plants crumble and aren't
repaired, and output drops.
Adjust the production possibilities curve (PPC) to show the economy's new production possibilities after the fall in the saving rate.
Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will
snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.
24
PPC
16
PPC
10
15
QUANTITY OF COMPUTERS (Millions)
Suppose society faces a broad tradeoff between allocating resources to the production of investment goods (computers) and consumption goods (cars)
before the fall in the saving rate described above.
Which of the following events would be most likely to lead to the fall in the saving rate you just illustrated?
O Increasing production of investment and consumption goods
O Decreasing production of investment goods and increasing production of consumption goods
O Increasing production of investment goods and decreasing production of consumption goods
O Decreasing production of investment and consumption goods
QUANT IT Y OF CARS (MIlions)

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