Economic decline will shift a society's production possibility frontier down and to the left.

Question

Quizplus · Accepted Answer

Economic decline typically results in a decrease in resources, capital, and productivity, which, in turn, decreases a society's ability to produce goods and services. This shift is reflected in the production possibility frontier, which shows the maximum output that can be produced with the given resources and technology. Therefore, an economic decline will shift the society's production possibility frontier down and to the left.

Economic Decline Will Shift a Society's Production Possibility Frontier Down