Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1
-Refer to Figure 16.1. Which of the following cannot cause a movement from Point A to Point C?
A) an expansionary monetary policy
B) technological progress
C) an increase in capital stock
D) an increase in the productivity of workers

Question

Refer to the information provided in Figure 16.1 below to answer the questions that follow.  Figure 16.1
-Refer to Figure 16.1. Which of the following cannot cause a movement from Point A to Point C?
A) an expansionary monetary policy 
B) technological progress 
C) an increase in capital stock 
D) an increase in the productivity of workers

Quizplus · Accepted Answer

An expansionary monetary policy typically affects aggregate demand rather than directly influencing the economy's productive capacity, which is what a movement from Point A to Point C on a production possibility frontier would imply. Points B, C, and D all directly or indirectly increase the productive capacity of an economy.

Refer to the Information Provided in Figure 16