Production Possibilities Curve/Gross Domestic Product Connection
{"Image DocumentName": "Production Possibilities Curve/Gross Domestic Product Connection", "Image ImageDescription": ".A. Assume this economy is fully employing all of its resources in the least costly way (Productive Efficiency) and chooses to produce at point A (Allocative Efficiency) Assume this economy can produce 5 Capital goods and services. And 10 consumption goods and services. Assume one capital G/S costs  5.00 and 1 consumption G/S costs  1.00. What is this economy\u2019s GDP? Capital. 5. Aggregate Demand/Aggregate Supply. 10. LRAS. Consumption. Price. Level. 5 Capital G/S X  5.00 =   Consumption G/S x  1.00 =   GDP -   This GDP represents Full-Employment. or Potential GDP .  35. FE.    Point A on the PPC is the same. thing as Full Employment Real GDP. Represented by LRAS \u2013 only expressed. In           Real GDP.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}