If we are operating inside our production possibilities frontier,
A)it is possible the economy is in a recession.
B)it is possible the economy is in a depression.
C)it is possible that the economy is in neither a recession or a depression.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

Operating inside the production possibilities frontier indicates that an economy is not utilizing all its resources efficiently, which can happen during a recession, a depression, or even outside these conditions if there are other inefficiencies present.

If We Are Operating Inside Our Production Possibilities Frontier