An outward shift of an economy's production possibilities curve is not caused by a decrease in unemployment.
The production possibilities curve is a visualization which shows the most efficient production of a pair of goods. Each point on the curve shows how much of each good will be produced when resources shift to making more of one good and less of another.
A reduction in unemployment would not produce an outward shift in the production possibilities curve. Thus, income and economic growth will shift the production possibilities curve out and in. Economic growth will shift the curve to the right as more of the two goods can now be produced.
Hence, an outward shift is not caused by a decrease in unemployment.
To learn more about production possibilities curve here:
https://brainly.com/question/15179228
#SPJ4
