If an economy keeps increasing its capital stock, then over time its production possibilities curve will:

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum amount of goods and services that an economy can produce given its resources and technology. Increasing the capital stock, such as through investment in new machinery or infrastructure, will lead to an increase in the economy's productive capacity. This means that the curve will shift to the right, showing that the economy can now produce more goods and services than before.

If an Economy Keeps Increasing Its Capital Stock, Then Over