A production possibilities curve will shift outward or to the right for all of the following reasons EXCEPT

Question

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An increase in unemployment rate would lead to a decrease in the available labor force, resulting in a shift inward or to the left of the production possibilities curve, not outward or to the right. All the other choices would result in an increase in the potential output of the economy, leading to a shift outward or to the right of the curve.

A Production Possibilities Curve Will Shift Outward or to the Right