Answer to Question #143815 in Macroeconomics for Peeriya Darsinii Ganesen

Question

Imagine that the society has two political parties, called the Helang ( who want a strong military) ans the merpati ( who want a smaller military). Show a point in your production possibilities frontier that the Helang might choose a point the Merpati might choose

Answer 1

As shown in the diagram below, Hawks who wants a dominant military would choose a point F . On the other hand ,Doves who wants a smaller military will choose a point E on the production possibility frontiers