Show the effects of a breakout of avion flu the sickens milions of workers on a PPF?

Question

Suppose Canada produces both agricultural and capital good, agricultural good - barley and locomatives - a capital good. How will the production possibilities frontier change to show that effects of a breakout. Will I adjust both barley and locomatives to the left or only one ?

Answer 1

Yes. Given the resources of the economy of Canada, the capacity to produce both of barley and locomotives will decline simply because less productive man-hours will be available to the economy as many workers will not be able to work for some days for agriculture or capital goods production because of their sickness due to the outbreak of the Avion flu. Moreover, the productivity of the workers who return to work from sickness may also fall temporarily due to physical  weakness caused by the flu.