Refer to the information provided in Figure 2.6 below to answer the question(s) that follow. Figure 2.6 -Refer to Figure 2.6. Which of the following will not cause the production possibility frontier to shift from ppf¹ to ppf²? A) the discovery of previously unknown oil fields B) an improvement in technology C) an increase in the stock of capital D) a decrease in the unemployment rate

Question

Quizplus · Accepted Answer

A decrease in the unemployment rate does not shift the production possibility frontier (PPF); it moves the economy closer to the existing PPF by utilizing idle resources. Discovering new resources, improving technology, and increasing capital stock all expand an economy's capacity, shifting the PPF outward.

Refer to the Information Provided in Figure 2