An outward shift of an economy's production possibilities curve is not caused by:

Question

Quizplus · Accepted Answer

A decrease in unemployment does not necessarily result in an outward shift of the production possibilities curve. While an increase in labor can lead to an outward shift, a decrease in unemployment may simply represent a shift of workers from one sector to another within the economy without an increase in the overall quantity of labor.

An Outward Shift of an Economy's Production Possibilities Curve Is