Macroeconomics 8th Edition by David Colander

Exercise 2

In the 1950s, Michael Hubert King, an oil geologist, mathematically determined that when 50 percent of oil reserves have been extracted, annual oil output would inexorably decline. Hea. Use the AS/AD model and the production possibility curve to describe what will happen when oil production declines.
b. What will this do to the question of "distribution," both within and between nations? (Institutionalist)