An increase in growth rates will cause the production possibilities curve to
A) shift inward.
B) become steeper.
C) become flatter.
D) shift outward.

Question

Quizplus · Accepted Answer

An increase in growth rates would mean that the economy can produce more goods and services than before, so the production possibilities curve would shift outward, indicating an increase in the maximum amount of goods and services that could be produced.

An Increase in Growth Rates Will Cause the Production Possibilities