3 Movements of the PPC
Ø Inside
the PPC: This occurs when resources are unemployed or underemployed
Ø Along
the PPC
Ø Shifts
of the PPC: Increase shifts curve to the right (Outside original curve);
Decrease shifts to the left (Inside original curve)
What causes the PPC to shift?
Ø Technological
Changes (Shift Outside/Right of the
Curve)
Ø Change
in Resources (More Resources = Shift
Outside/Right) (Less Labor = Shift
Inside/Left)
Ø Economic
Growth (Shift Outside/Right of the Curve)
Ø Natural
Disasters/War/Famine (Shift Inside/Left
of the Curve)
Ø Change
in Labor Force (Less Labor = Shift
Inside/Left) (More Labor = Shift
Outside/Right)
More Education &
Training (Shift Outside/Right of the
Curve)
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