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Consider an economy that produces consumer goods and capital goods

Economics

Consider an economy that produces consumer goods and capital goods. Suppose the economy is operating at full-employment and all capital goods are subject to legal price ceilings set below equilibrium prices. Use a competitive supply/demand diagram of capital goods, a diagram of current production possibilities frontier curve (PPF), a diagram of future production possibilities frontier curves (PPF), and brief verbal descriptions to compare this economy's production combination in the absence of price controls. In this case, would the price controls result in higher or lower rates of future economic growth? Why?

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