If Macroland Has a Higher Economic Growth Rate Than Econia

question 65

Multiple Choice

If Macroland has a higher economic growth rate than Econia over a twenty-year period, then Macroland's production possibilities frontier (PPF) will:

• A) shift outward more rapidly than Econia's PPF during the time period.
• B) shift inward more rapidly than Econia's PPF during the time period.
• C) rotate around its midpoint, and Econia's PPF will rotate in the opposite direction.
• D) remain stationary while production moves to a higher point on the curve. Econia's PPF is also stationary, and production moves to a slightly higher point on its curve.

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