![]() Instead, they are just using their resources more efficiently and moving to a new point on the PPC. If they then put all of those donut machines to work, they aren’t acquiring more resources (which is what we mean by economic growth). Graphically, that would be represented by a combination of goods in the interior of their PPC. But half of their donut machines aren’t being used, so they aren’t fully using all of their resources. For example, suppose an economy can make two goods: chocolate donuts and cattle prods.
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