An inward shift of the production possibilities curve
A)represents an economic decline.
B)means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
C)means that the economy can produce more of both goods.
D)All of the choices are true.
E)represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.

Question

Quizplus · Accepted Answer

An inward shift of the production possibilities curve indicates that the economy is now less capable of producing goods and services than it was before, representing an economic decline. It also means that the levels of production that were previously achievable are now unattainable under normal circumstances, possibly except under unusual conditions like war, where resources might be reallocated or used more intensively.

An Inward Shift of the Production Possibilities Curve