An economy’s production possibility frontier (PPF) for Clean Energy Output and Industrial Steel Production is shown in the diagram below.
If the economy moves from point K K\,K to point L L\,L along the frontier, which of the following statements is correct?
The opportunity cost of increasing industrial steel production is the foregone clean energy output.
The economy's productive potential has expanded due to a more efficient allocation of resources.
The level of structural unemployment in the clean energy sector must have decreased.
The economy has achieved short-run economic growth by utilizing previously idle resources.
