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A-Level Economics · PPF outward shift (economic growth) diagram question

What is the difference between ACTUAL and POTENTIAL growth on this diagram?

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The diagram

The answer

Actual growth is moving from F towards the frontier; potential growth is the frontier itself shifting from PPF1 to PPF2. Two different moves, two different stories: using spare capacity (F towards the frontier) versus building more capacity (PPF1 out to PPF2). Actual growth uses resources you already have, so you move TOWARDS the frontier from a point like F. Potential growth is productive potential itself rising, so the whole frontier moves out to PPF2. Say which one you mean, every time — the examiner is checking.

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