2. Unemployment Rate (percent) Year ? Year=1965, Unemployment = 4.5%

3. Inflation (percent per year) Year

4. 1963 1969 1968 1967 1966 1965 1964 Unemployment Rate (percent) Inflation Rate (percent per year)

5. Unemployment Rate (percent) 19701969 1975 1983 1963

6. A Quantity of Butter Quantity of Guns B C D PPF

7. Quantity of Output 1 Quantity of Output 2 PPF with Additional Resources or Technological Progress Original PPF

8. A Quantity of Resource-Depleting Production Quantity of Maintenance B

9. Quantity of Output 1 Quantity of Output 2 Future PPF with High Resource Maintenance Now Future PPF with High Resource Depletion Now