A reduction in the amount of unemployment
A) moves the economy's point of production along the production possibilities frontier.
B) moves the economy's point of production further away from the production possibilities frontier.
C) moves the economy's point of production closer to the production possibilities frontier.
D) shifts the production possibilities frontier outward.

Question

Quizplus · Accepted Answer

A reduction in unemployment means more people are employed and therefore producing goods and services. This increases the economy's output and moves it closer to its production possibilities frontier, as it is utilizing its resources more efficiently.

A Reduction in the Amount of Unemployment