Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to:

Question

Quizplus · Accepted Answer

A shift from AB to CD on the production possibilities curve indicates an increase in the economy's potential output. This can be caused by an increase in quantity and quality of labor resources, such as through education or immigration, leading to greater productivity and efficiency in production. It is not caused by increased spending or government purchases, which could temporarily shift the economy along the curve but not push its potential output higher. Therefore, choice D is the best answer.

Refer to the Diagram Below