February/March 2026 Paper 12

2026 · 30 questions · 30 parts · 30 marks

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3Production Possibility Curves Growth Trade OffsMedium1 mark
The diagram shows an economy located at point X on an initial production possibility curve, . The government would like to move to point Y on .
production possibility curve diagram, consumer goods on the vertical axis and capital goods on the horizontal axis, with point X on the inner curve PPC1 and point Y on the outer curve PPC2
Which policy is likely to achieve this outcome?