If the unemployment rate decreases from 9% to 6%, the economy will
A) move closer to a point on the ppf.
B) move away from the ppf toward the origin.
C) remain on the ppf.
D) remain on the origin.

Question

Quizplus · Accepted Answer

A decrease in the unemployment rate implies that more resources (in this case, labor) are being utilized in the economy. This would move the economy closer to its production possibilities frontier (PPF), which represents the maximum output that can be achieved with the available resources.

If the Unemployment Rate Decreases from 9% to 6%, the Economy