What is the impact of economic growth on a nation’s GDP and PPC? A. GDP increases, and the PPC shifts to the left. B. GDP decreases, and the PPC shifts to the right. C. GDP stays the same, and the PPC shifts to the left. D. GDP increases, and the PPC shifts to the right.
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Option D i.e GDP increases and the PPC shifts o the right is the correct answer.
GDP or Gross Domestic Production is the value of total goods and services produced in the country while as PPP (Production possibility curve) is a graph that compares production of two commodities by using same fixed amount of factors of production.
We see when the economy of a country is growing, her GDP increases and the PPC shifts to the right in the curve.
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Answer:
The answer is D just took the test. Thank me later :)
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