A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?
A) It would shift the curve to the right.
B) It would shift the curve to the left.
C) It would not shift the curve; it would be represented by a movement from a point inside the curve toward a point on the curve.
D) It would not shift the curve; it would be represented by a movement from a point on the curve to a point outside the curve.

Question

Quizplus · Accepted Answer

A reduction in unemployment means that more resources are being utilized, moving the economy from a point inside the production possibilities curve to a point on the curve, indicating more efficient use of resources without shifting the curve itself.

A Reduction in the Level of Unemployment Would Have Which