An Inward Shift of the Production Possibilities Curve

Multiple Choice

An inward shift of the production possibilities curve

A) represents an economic decline.
B) means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
C) means that the economy can produce more of both goods.
D) All of the choices are true.
E) represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.