In the long-run, if the production of all goods increases for a society (there is economic growth), it will cause the production possibility curve to:
A) shift inward.
B) shift outward.
C) first shift inward and then shift outward.
D) stay the same.

Question

Quizplus · Accepted Answer

Economic growth leads to an increase in production capacity, which means that more goods can be produced. This causes the production possibility curve to shift outward to reflect the new production possibilities.

In the Long-Run, If the Production of All Goods Increases