How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF)?
A) It will cause the PPF to shift inward.
B) It will cause the PPF to shift outward.
C) It will move society to a point inward,to a point farther away from the PPF.
D) It will move society outward,to a point closer to or on the PPF.
E) It will push society to a point outside its PPF.

Question

Quizplus · Accepted Answer

A reduction in the unemployment rate means that more resources (labor) are being utilized, moving the economy closer to or onto the PPF, indicating more efficient production.

How Will a Reduction in the National Unemployment Rate Affect