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Consider the following data for a hypothetical economy.
Guns (hundreds): 8 7 5 3 1 0
Butter(tons): 0 4 10 14 16 16.25
a) Graph the ppf
b) calculate the oppurtunity cost of guns in terms of butter and that of butter in terms of guns.
c) If you observed this economy producing 700 guns and 3 tons of butter, what would you conclued about how this economy is solving the 'how' problem?
d) If you observed this economy at spme later date producing 700 guns and 12 tons of buter, what would you conclude?
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q.assume the followingi. the public holds no currency.ii. the ratio of reserves to deposits is 0.1.iii. the demand for
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