On a diagram of a production possibilities frontier,economic decline (negative growth)is represented by the production possibilities frontier shifting inward.

Question

Quizplus · Accepted Answer

This is true because economic decline means a reduction in a country's productive capacity, which results in a decrease in its ability to produce goods and services. This leads to a shift inward of the production possibilities frontier, as the country is no longer capable of producing as much output as before.

On a Diagram of a Production Possibilities Frontier,economic Decline (Negative