Use the diagram below to answer the questions.(a) If the economy's production possibilities curve is shown by curve AB, then draw in a new curve, which indicates positive economic growth.(b) If the economy illustrated by production possibilities curve AB is producing at point 4, what economic problem does this represent for this economy?
(c) What are some of the factors, which could cause a shift from AB to EF? 
Definitions:
Retained Earnings
The portion of net income that is retained by a company rather than distributed to its owners or shareholders as dividends.
Undistributed Profits
Profits earned by a company that are not paid out as dividends to shareholders but are retained for reinvestment in the business or held as reserves.
R&D Finance
Financial resources allocated for research and development activities in a company or organization.
Retained Earnings
Profits that a company keeps or reinvests in itself rather than distributing to shareholders as dividends.
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