A macro production possibilities frontier shifts when there is a change in the quantity of inputs.

Question

Quizplus · Accepted Answer

The macro production possibilities frontier represents the maximum output that an economy can produce with its current resources and technology. If the quantity of inputs changes, such as an increase in the labor force or an improvement in technology, the production possibilities frontier will shift outward, indicating that the economy is now capable of producing more goods and services than before. Therefore, the statement is true.

A Macro Production Possibilities Frontier Shifts When There Is a Change