Model Number One - All the combinations of guns and butter...

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Model Number One Production Possibility Frontier (PPF) Modeling in economics  1. We usually make assumptions to simplify our models  Assumptions: 1. Set amount of resources 2. Set amount of technology 3. On the PPF the economy is operating at full employment 
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Unformatted text preview: All the combinations of guns and butter that can be produced with a given set of technology and resources - no gun all butter- No butter all gun- On the line, no employment...
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This note was uploaded on 11/19/2010 for the course ECON ECON200 taught by Professor Ericka during the Spring '10 term at University of Washington.

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