When output increases the PPC of the economy indicating in the economy.?

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2026-03-19 19:15

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When output increases, the Production Possibility Curve (PPC) of the economy typically shifts outward, indicating economic growth. This expansion reflects an increase in the economy's capacity to produce goods and services, often due to factors like improved technology, an increase in resources, or enhanced productivity. As a result, the economy can produce more of both goods represented on the PPC, illustrating greater efficiency and potential for welfare improvement.

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