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A shift inward of the production possibilities curve signifies that ___________Answer Line.(1 point)
Responses
the demand for the products has decreased, so the supply will decrease
the demand for the products has decreased, so the supply will decrease
the demand for the products has increased, so the supply will increase
the demand for the products has increased, so the supply will increase
the available resources have increased, so potential production levels will increase
the available resources have increased, so potential production levels will increase
the available production resources have decreased, so potential production levels will decrease
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the available production resources have decreased, so potential production levels will decrease
Explanation: An inward shift of the PPF means the economy's productive capacity has fallen (fewer resources, reduced technology), so maximum possible output is lower.
Explanation: An inward shift of the PPF means the economy's productive capacity has fallen (fewer resources, reduced technology), so maximum possible output is lower.
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