What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?
A) The entire frontier would shift outward.
B) The upper part of the frontier would shift outward while the lower part would shift inward.
C) Nothing,there would be no movement of the frontier.
D) The entire frontier would shift inward.
E) The lower part of the curve would shift outward while the upper part would shift inward.
Correct Answer:
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