An increase in growth rates will cause:

Question

Quizplus · Accepted Answer

An increase in growth rates implies that an economy is able to produce more output with the same level of input. This means that the economy is becoming more efficient and effective in its production process. An outward shift of an economy's production possibilities curve represents an increase in productive capacity of the economy, indicating the ability to produce more goods and services with the same inputs. Therefore, choice B is the correct answer.

An Increase in Growth Rates Will Cause