Sunday, January 24, 2016

Three Movements of the PPC
  1. Inside the PPC: this occurs when resources are unemployed or underemployed 
  2. Along the PPC
  3. Shifts of the PPC
What Causes the PPC to shift?
  • Technological Changes (Shift Outside/Right of the Curve)
  • Change in Resources (More Resources = Shift Outside/Right) (Less Labor = Shift Inside/Left)
  •   Economic Growth (Shift Outside/Right of the Curve)
  • Natural Disasters/War/Famine (Shift Inside/Left of the Curve)
  • Change in Labor Force (Less Labor = Shift Inside/Left) (More Labor = Shift Outside/RightMore Education & Training (Shift Outside/Right of the Curve)

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