In the short run,movement toward a fixed production possibilities curve comes from
A)Expansion of the production possibilities curve.
B)Shifting the aggregate demand curve to the left.
C)Increased use of our productive capabilities.
D)An increase in population.

Question

Quizplus · Accepted Answer

In the short run, movement toward a fixed production possibilities curve comes from increased use of our productive capabilities. This means that we are using our resources more efficiently and effectively to produce goods and services, resulting in an increase in output. Factors such as improved technology, better management, and increased specialization can lead to this increased productivity in the short run. Expansion of the production possibilities curve or an increase in population would only occur in the long run. Shifting the aggregate demand curve to the left would result in a decrease in output, which is the opposite of what is being asked for.

In the Short Run,movement Toward a Fixed Production Possibilities Curve