Which of the Following Would Shift a Nation's Production Possibilities

question 72

Multiple Choice

Which of the following would shift a nation's production possibilities frontier inward?

• A)discovering a cheap way to convert sunshine into electricity
• B)producing more capital equipment
• C)an increase in the unemployment rate
• D)a law requiring workers to retire at age 50

---

Definitions:

Aggregate Demand Curve

A graphical representation showing the relationship between the total demand for goods and services in an economy and the overall price level.

Price Level

The average of all current prices for goods and services in an economy, often measured by a price index.

Keynesians

Economists who follow the theories of John Maynard Keynes, emphasizing the role government should play in moderating economic cycles through fiscal and monetary policies.

Aggregate Demand

The total market appetite for goods and services within an economy, delineated at a specific price level over an agreed time duration.