Final answer:
A nation's economic growth has a positive effect on the production possibilities frontier (PPF) as it shifts outward, indicating that the nation can produce more of all goods and services.
Step-by-step explanation:
In economics, a nation's economic growth would have a positive effect on the production possibilities frontier. The production possibilities frontier (PPF) represents the maximum amount of goods and services that a nation can produce with its given resources and technology.
When an economy experiences economic growth, the PPF will shift outward, indicating that the nation can produce more of all goods and services.
For example, if a country invests in new technologies or increases its labor force, it can increase its productive capacity. This means that the PPF will expand, allowing the nation to produce more goods and services than before.