The economy experiences economic growth if:

Question

Quizplus · Accepted Answer

Economic growth occurs when the production possibilities frontier (PPF) shifts outwards, allowing for increased production capabilities and output. This can be achieved through factors such as technological advancements, increased capital and labor resources, or better utilization of existing resources. Decreasing resources (choice A) and decreasing numbers of workers (choice C) would have the opposite effect, causing a contraction of the economy. Similarly, if the PPF shifts inwards (choice B), this implies a decrease in production capabilities, and therefore a contraction of the economy.

The Economy Experiences Economic Growth If