Technological change is represented on a macro production possibilities frontier (PPF) by a movement from a point inside the PPF to a point on the PPF.

Question

Quizplus · Accepted Answer

Technological change is represented on a macro production possibilities frontier (PPF) by an outward shift of the PPF itself, indicating an increase in the potential output of goods and services, not merely a movement to a point on the existing curve.

Technological Change Is Represented on a Macro Production Possibilities Frontier