The graph below shows the short-run production possibilitiesfrontier for a hypothetical country whose currency is the U.S.dollar (as it is, in fact, for Ecuador and El Salvador). Thecountry chooses to produce the mix of capital and consumer goodsindicated by point A. This leads to a long-run expansion of theproduction possibilities frontier, with a 20% increase inproduction capacity for both consumer and capital goods.
Use the curved-line tool to draw the new production possibilitiesfrontier. Point A happens to coincide with the middle control pointof the short-term curve; use that to help you decide where thecurved-line tool’s middle control point of the long-term curveshould go (do not use the point tool to plot a point).
To refer to the graphing tutorial for this question type, pleaseclick here.
need help how to draw the curve
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