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Exhibit: Investment and Production Possibilities
-(Exhibit: Investment and Production Possibilities) A movement from point s to point t on curve B is likely to cause the economy to shift from

Question

Use the following to answer questions .
Exhibit: Investment and Production Possibilities 
-(Exhibit: Investment and Production Possibilities) A movement from point s to point t on curve B is likely to cause the economy to shift from

Quizplus · Accepted Answer

A movement from point s to point t on curve B indicates an increase in investment, which leads to an increase in production capacity. This shift from a point on curve B to a point on curve C reflects a shift in the economy from its current production possibilities curve to a new curve with a higher potential output level. Therefore, the correct answer is C, where the economy shifts from curve B to curve C.

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