An increase in the production of capital goods

Name: An increase in the production of capital goods
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the production of capital goods leads to an increase in a country's productive capacity over time, which shifts the production possibilities frontier (PPF) outward in the future. This is because capital goods, such as machinery and equipment, enhance the efficiency and volume of production, enabling the economy to produce more goods and services in the future.

An Increase in the Production of Capital Goods