Question

Effect on ppc curve due to demonetization

Answer 1

Effect on PPC curve :-

The Goods and Tax ( GST) will effect the PPC in both long run & short run .

It is good for the long run as it will increase the production potential, GDP of country will also rise and PPC will shift rightward .

In short run it will effect the PPC and it will shift leftward as the indirect tax's will be removed and the supplier will decrease production..