-Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If a war reduces the country's capital stock by 40%, the new equilibrium is most likely to be
A) point f.
B) point h.
C) point e.
D) point b.
E) point d.

Question

-Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If a war reduces the country's capital stock by 40%, the new equilibrium is most likely to be
A) point f. 
B) point h. 
C) point e. 
D) point b. 
E) point d.

Quizplus · Accepted Answer

The Answer of 
-Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If a war reduces the country's capital stock by 40%, the new equilibrium is most likely to be
A) point f. 
B) point h. 
C) point e. 
D) point b. 
E) point d.

-Refer to the Production Possibility Graph Above