If an economy's institutional production possibilities frontier (institutional PPF)shifts rightward,the economy's
A) natural unemployment rate rises.
B) natural unemployment rate falls.
C) Natural Real GDP declines.
D) physical PPF shifts leftward.
E) physical PPF shifts rightward.

Question

Quizplus · Accepted Answer

A rightward shift in the institutional PPF indicates improvements in the economy's institutions, which can lead to a decrease in the natural unemployment rate as the economy becomes more efficient and productive.

If an Economy's Institutional Production Possibilities Frontier (Institutional PPF)shifts Rightward,the