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22 June, 01:26

How will a decrease in technology from a natural disaster such as a hurricane, ceteris paribus, affect an economy's production possibilities curve?

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  1. 22 June, 01:49
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    a. Shift the curve inward.

    Explanation:

    If a natural disaster were to occur such as a hurricane it would affect an economy's production possibilities curve by shifting the curve inward. This means that there will be less overall amount of product being produced. This is mainly due to the fact that individuals will not be attending work and therefore production will slow down drastically.
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