Economic growth is depicted by ?
Correct answer: A. a shift in the production possibilities frontier outward.
- A. a shift in the production possibilities frontier outward.
- B. a movement from inside the curve toward the curve.
- C. a shift in the production possibilities frontier inward
- D. a movement along a production possibilities frontier toward capital goods.
Explanation
Economic growth expands an economy’s productive capacity, represented by an outward shift of the production possibilities frontier. Moving toward or along the existing frontier only reflects better resource use or a changed output mix.
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