When there is a decrease in the unemployment rate,

Question

Quizplus · Accepted Answer

A decrease in the unemployment rate means there are fewer people without jobs and more people contributing to the economy. This can lead to an increase in productivity and a movement towards the production possibilities curve, which represents the maximum possible output that can be achieved with available resources. However, it does not necessarily mean the curve shifts outward or inward, as that depends on other factors such as technological advancements or changes in resource availability.

When There Is a Decrease in the Unemployment Rate