Points located on the curve of the graph are a possible maximum output of the combination of goods being produced, which is 100% efficient.

Points lying outside the curve are usually unattainable. An economy may reach these points during wartime, when people are willing to work longer and harder for the sake of the war effort, but in the long term they are unsustainable.

Points lying inside the curve are attainable, but they indicate full employment is not being realized. If unemployment is high, the economy will be very far inside the curve. If not, the economy will be closer to the curve.