The recession of 2008-2009 would most likely be represented in a production possibilities frontier graph by
A)movement to a point inside the frontier.
B)movement to a point outside the frontier.
C)movement to a point on the frontier.
D)an increase in an intercept on either the vertical or the horizontal axis of the PPF.

Question

Quizplus · Accepted Answer

The recession of 2008-2009 caused a decrease in the overall production capacity of the economy, which would be represented by a movement to a point inside the frontier. This means that the economy is producing less than it is capable of producing, indicating a decrease in economic activity and output.

The Recession of 2008-2009 Would Most Likely Be Represented in a Production