Economic growth causes the PPF to
A) shift leftward.
B) shift rightward.
C) remain constant.
D) go from a straight line to a curve.

Question

Quizplus · Accepted Answer

Economic growth causes the production possibilities frontier (PPF) to shift rightward, expanding the economy's ability to produce goods and services. This is because economic growth can result from increased productivity, technological advancements, and increased resources, all of which enable an economy to produce more output with the same amount of inputs. As a result, the PPF shifts outward, reflecting increased production capacity.

Economic Growth Causes the PPF to