When explaining basic macroeconomics model involving consumption-leisure tradeoff, often diagram showing production possbility frontier (PPF) is drawn with leisure on x-axis and consumption on y-axis. But what exactly is the meaning of this production possibility frontier?
Production Possibility Froniter diagram is often drawn on two-goods basis (for example, like butter on x-axis and milk on y-axis) but I am confused on what PPF might be on consumption-leisure basis.
Reference: http://newmonetarism.blogspot.com/2014/02/rbc-and-nk-in-nutshell.html