An increase in the labor force will generally shift the production possibilities frontier (PPF) outward. This outward shift signifies that an economy is now able to produce more goods and services than before.
The PPF demonstrates the maximum output possibilities for two goods or services, given a set of resources and technology. When more workers join the labor force, the economy can utilize more human resources to produce goods. As a result, the overall production capacity increases, allowing the economy to produce a greater quantity of both goods represented on the PPF.
Moreover, an increased labor force can lead to improved specialization and efficiency, as more workers can develop expertise in specific sectors, further enhancing productivity. In essence, when the labor force expands, the economy can achieve a higher level of output overall, reflected by the outward shift of the PPF.