If Canada's population were to decline:
A) the production-possibilities curve for Canada would shift to the right.
B) Canada would need to shift production to another point on its production-possibilities curve.
C) the production-possibilities curve for Canada would shift to the left.
D) there would be an increase in unemployment.

Question

Quizplus · Accepted Answer

A decline in population would reduce the labor force, leading to a decrease in the potential output of the economy, thus shifting the production-possibilities curve to the left.

If Canada's Population Were to Decline