A long-run expansion in capacity
A)Shifts the production possibilities curve rightward.
B)Shifts the production possibilities curve leftward.
C)Moves the economy to a point closer to its existing production possibilities curve.
D)Moves the economy upward to the left along its existing production possibilities curve.

Question

Quizplus · Accepted Answer

By expanding its capacity, an economy is able to produce more goods and services, which shifts the production possibilities curve rightward. This means that the economy is able to produce more both now and in the future, leading to economic growth.

A Long-Run Expansion in Capacity