For the economic nation, the output potential curve moves to the left. This might have happened as a result of a battle that depleted the economy's resources.
The maximum output of two items with a fixed amount of input is measured by a production possibilities curve. The four variables of production—natural resources (including land), labor, capital goods, and entrepreneurship combine to make up the input. The most effective way to produce a pair of items is shown visually by the production possibilities curve. When resources are allocated to producing more of one good and less of another, the points on the curve represent how much of each good will be produced.
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