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-(Figure: Consumer and Capital Goods)Use Figure: Consumer and Capital Goods.Technological improvements will likely:
A)shift the production possibility frontier inward to curve 1.
B)shift the production possibility frontier outward to curve 2.
C)lead to increased unemployment.
D)leave the production possibility frontier unchanged.

Question

Use the following to answer question:

-(Figure: Consumer and Capital Goods)Use Figure: Consumer and Capital Goods.Technological improvements will likely:
A)shift the production possibility frontier inward to curve 1. 
B)shift the production possibility frontier outward to curve 2. 
C)lead to increased unemployment. 
D)leave the production possibility frontier unchanged.

Quizplus · Accepted Answer

Technological improvements will likely increase production efficiency, allowing for more goods to be produced with the same amount of resources. This will shift the production possibility frontier outward to curve 2, indicating an increase in the potential production of both consumer and capital goods.

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