Economic decline (negative growth)is represented on a production possibility frontier model by the production possibility frontier________.

Question

Quizplus · Accepted Answer

When there is economic decline or negative growth, the economy is producing less than its maximum potential, which means it is moving inward on the production possibility frontier. This is because resources are either being used inefficiently or there are fewer available resources to produce goods and services.

Economic Decline (Negative Growth)is Represented on a Production Possibility Frontier