Question

The production possibilities curve would shift outward as a result of a(n) decrease in labor productivity. increase in absenteeism. new integrated circuit that revolutionizes the defense industry. increase in short run aggregate supply. increase in aggregate demand.

Answer 1

new integrated circuit that revolutionizes the defense industry.

Step-by-step explanation:

The production possibility curve is a curve that shows the two combinations of goods an economy can produce when all its resources are fully employed.

the two factors that can cause an outward shift in the PPC are :

1. increase in labour productivity

2. technological advancement

new integrated circuit that revolutionizes the defense industry is a form of technological advancement.