Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?

Question

Quizplus · Accepted Answer

A shift in the production possibilities curve indicates an increase in potential output and thus, an increase in economic growth. Supply factors such as technological advancements, increased capital or labor inputs, and improvements in natural resources can all contribute to this shift. Demand, efficiency, and allocation factors may affect the distribution of resources, but they are not likely to directly impact the potential output of the economy.

Refer to the Above Diagram