Question

Effect on PPC due to various government policy

Answer 1

Answer:

The PPC or the Production Possibility Curve is not effected or influenced by the demonetization in India. The demonetization has resulted in a very bad position of the cash which when we get in hand is reduced.

This will eventually lead to PPC being backward. As those assets are not regarded hence PPC isn't affected.

So as the time will pass investment will be reduced and go at a low level which will result in less production.