Which of the following statements about an outward shift of the production possi

Question

Which of the following statements about an outward shift of the production possibilities frontier is true? The economy can no longer produce the same quantities of consumption and capital goods it did before the shift. The economy can produce more capital goods but fewer consumption goods. The economy faces a broader set of optimal production combinations. The aggregate supply curve shifts upward, meaning that at every price, producers are willing to supply less than they were before the shift. Which of the following statements about an outward shift of the production possibilities frontier is true? The economy can no longer produce the same quantities of consumption and capital goods it did before the shift. The economy can produce more capital goods but fewer consumption goods. The economy faces a broader set of optimal production combinations. The aggregate supply curve shifts upward, meaning that at every price, producers are willing to supply less than they were before the shift.

Explanation / Answer

The economy faces a broader set of optimal production combinations.

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