Technological change is represented on a macro production possibilities frontier (PPF) by an outward shift of the PPF.

Name: Technological change is represented on a macro production possibilities frontier (PPF) by an outward shift of the PPF.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

Technological change leads to an increase in productivity, enabling more output to be produced with the same amount of resources. This results in an outward shift of the PPF, as the economy now has the ability to produce more goods and services than before.

Technological Change Is Represented on a Macro Production Possibilities Frontier