Asked by Grace Kushner on May 05, 2024
Verified
Economic growth causes a production possibilities frontier to shift outward.
Economic Growth
An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in the Gross Domestic Product (GDP).
Production Possibilities Frontier
A graph that illustrates all the highest production options for two or more products, based on a specific set of resources, such as labor and materials.
- Comprehend the influence of unemployment and economic growth on the productive capacity of an economy.
- Comprehend the impact of technological progress on enhancing economic development and production efficiency.
Verified Answer
KR
Kevin RobertsMay 09, 2024
Final Answer :
True
Explanation :
Economic growth allows an economy to produce more goods and services, which is represented by an outward shift in the production possibilities frontier (PPF), indicating an increase in the economy's capacity to produce.
Learning Objectives
- Comprehend the influence of unemployment and economic growth on the productive capacity of an economy.
- Comprehend the impact of technological progress on enhancing economic development and production efficiency.