Refer to the Above Production Possibilities Curves

Multiple Choice

Refer to the above production possibilities curves. Curve (a) is the initial curve for the economy, and the nation is initially producing combination P. A shift from curve (a) to curve (b) suggests that the economy can then increase its production of capital goods:

A) Only if it reduces its production of consumer goods
B) So as to produce the combination L
C) And consumer goods simultaneously
D) But will have to hold constant its production of consumer goods