Which of the following will not shift a country's production possibilities frontier outward ?
Correct answer: D. a reduction in unemployment
- A. an advance in technology
- B. an increase in the labor force
- C. an increase in the capital stock
- D. a reduction in unemployment
Explanation
A reduction in unemployment uses existing resources more fully and moves the economy toward its existing frontier, but does not expand productive capacity. Technology, labour, and capital increases can shift the frontier outward.
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