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True or False: Economic growth causes a production possibilities frontier to shift outward.

User Stefdelec
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True.

Economic growth typically causes a production possibilities frontier (PPF) to shift outward. When an economy experiences growth, it means it can produce more goods and services than before due to factors such as technological advancements, increased capital investment, improved efficiency, and population growth.

This expansion of the economy's capacity to produce results in an outward shift of the PPF, indicating that more combinations of goods and services are now attainable. In other words, the economy can produce more without sacrificing the production of other goods or services.

User Ivan Marinov
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