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Exhibit: Consumer and Capital Goods

-(Exhibit: Consumer and Capital Goods) The movement from Curve 1 to Curve 2 indicates:
A) economic growth.
B) going from unemployment to full employment.
C) a decrease in the level of technology.
D) instability.

Question

Use the following to answer question(s): 
Exhibit: Consumer and Capital Goods
 
-(Exhibit: Consumer and Capital Goods) The movement from Curve 1 to Curve 2 indicates:
A) economic growth. 
B) going from unemployment to full employment. 
C) a decrease in the level of technology. 
D) instability.

Quizplus · Accepted Answer

The movement from Curve 1 to Curve 2 indicates an increase in the production possibilities of both consumer and capital goods. This is indicative of economic growth.

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