what does a rightward shift of PPC indicate?explain?
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Answer -:
PPC shifts to the right because of the following reasons :
(i) When resources increase or grow, more of the goods can be produced. For example, when more capital is accumulated or new natural resources are discovered and used for production, PPC shifts to the right.
(ii) PPC also shifts to the right when there is an improvement in technology. When technological progress takes place, it is possible to produce more of two goods with a given amount resources.
It implies increase in productive capacity which means that the economy can produce more of both goods.
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