additional slides learning outcome 1 level 5 economics
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Additional Slides
Learning Outcome 1Level 5 Economics
Production Possibility Frontier
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0 100 200 300 400 500 600 700Civilian Goods
MilitaryGoods
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Solution to Solution to exercise exercise sheet 2; sheet 2; not given not given every every semester.semester.
positive growth
• U moves towards PPF
• PPF does not move
negative growth
• U moves away from PPF
• PPF does not move
Growth by increased capacity utilisationesc to esc to returnreturn
Growth by Expansion of the PPFesc to esc to returnreturn
Decreased unemployment allowing above-normal growth
U1
U2
esc to esc to returnreturn
Increased unemployment despite growth
U1
U2
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Recession: negative growth despite an increased PPF (high unemployment).
U1U2
esc to esc to returnreturn
Calculating the slope of a line
MBW2p.33
Slope = – 2/8= – 0.25
Slope = – 4/8= – 0.5