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Question: national defense x 4 suppose the production possibilities frntier of...

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National Defense (X) 4. Suppose the production possibilities frántier of the United is represented above. In this model, the U.S. is assumed to produce two goods, national defense (X) and health care (Y). a. Which of the three goods combinations (A, B, or E) best represents the current production levels of the U.S. economy? Explain? b. Would the opportunity cost of national defense be higher if the economy were operating at point C or at point D? Explain. c. Suppose the U.S. economy was currently operating at point B. What strategy could it undertake in order to be able to produce and consume the goods combination represented by point E? Explain. Food 988 5
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