In this video Sal explains how the production possibilities curve model can be used to illustrate changes in a country’s actual and potential level of output. Concepts covered include efficiency, inefficiency, economic growth and contraction and recession.
View more lessons or practice this subject at http://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/production-possibilities-curve-scarcity-choice-and-opportunity-cost-macro/v/production-possibilities-curve?utm_source=youtube&utm_medium=desc&utm_campaign=apmacroeconomics
AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we’ll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!
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