Production Possibility Curve (PPC)... Continued

However, the amounts of resources do change. Sometimes they increase, while at other times they decline. We experience economic decline when resources decrease and an economic growth when resources increase. A decrease in resources shifts the PPC curve inwards (to the left). An increase shifts outward (to the right). We can also buy less of each item when resources decline and more of each when resources increase as shown in figure 1.3 below (see points C - H)

The PPC shifts with changes in resources. For examples an economic decline (40,000) leads to shift inwards (I, J, K etc).