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Suppose Ireland produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and cars, a capital good.

Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of cars.

420 T PPF E 210 140 PPF 44》 4) 120 160 2400 ALFALFA (Millions of bushels)

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