What is the effect of economic growth on a production possibility curve ?
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Explanation:
Economic growth occurs when an economy's production at the full employment level increases. Increase in the production at the full employment level is shown by an outward shift of production possibility frontier (PPF).
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Answer:
the second meaning of economic growth is an increase in what an economy can produce if it is using all it's scarce resources. An increase in an economy's productive potential can be shown by an outward shift in the economy's production possibility frontier.
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