What will cause an economy's production possibility curve to shift out and to the right?

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2026-08-16 11:05

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An economy's production possibility curve (PPC) shifts out and to the right due to factors such as an increase in resources, advancements in technology, or improvements in productivity. For example, a discovery of new Natural Resources or a significant technological innovation can enhance production capabilities. Additionally, investment in education and training can lead to a more skilled workforce, further expanding the economy's productive capacity. These changes enable the economy to produce more goods and services.

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