Economic growth refers to an increase in the total output of goods and services in an economy over time. This allows an economy to produce more goods and services, thereby shifting the production possibilities curve outward. This suggests that more output is attainable with the same resources or that the same amount of output is attainable with fewer resources.

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Economic Growth Will

Question 61

Multiple Choice

Economic growth will

A) shift the production possibilities curve inward.
B) shift the production possibilities curve outward.
C) shift along the production possibilities curve toward the X-axis.
D) be a movement from inside the productions possibilities curve to the curve itself.

Correct Answer: