A lot of people died and many factories destroyed in an earthquake. How it will affect the ppc of an economy
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Severe earthquake in a country leads to decline in both human (as people die) as well as capital (factories are destroyed) resources. As a result of which less resources are left for producing the goods. Thus, the decline in resources will lead to a leftward shiftin the Production Possibility Curve (PPC).
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Severe earthquake in a country leads to decline in both human (as people die) as well as capital (factories are destroyed) resources. As a result of which less resources are left for producing the goods. Thus, the decline in resources will lead to a leftward shiftin the Production Possibility Curve (PPC).
In case of any doubts, do get back to me
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