ppc1 shows the current production possibilities curve (ppc) for the economy of tinville, and ppc2 shows the ppc for tinville next year if the economy were to operate at point a today. that is, investment choices today impact the growth of the economy in the future, and thus the ppc for next year. capital goods consumer goods ppc 1 ppc 2 a suppose that this year, the economy is operating at point a, but then an earthquake destroys more capital than is being produced during the year. on the following graph, the ppc that best describes the tinville economy next year is . (note: ppc1 and ppc2 are the same as on the previous graph.)
