Question

Economic slowdown in some parts of the world has adversely affected demand for indian exports.what will be its effect on ppc o india

Answer 1

A fall in Indian exports would lead to shrinkage in the overall production of goods and services in the country.

Production possibility curve (PPC) is an indicator of growth or decline in the productive activities of the economy.

There would be a significant leftward shift in the PPC curve of India. This shows that there are lesser chances of production taking place during that period.