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Assume the Economy Moves from a Situation with Full Employment

Question 103

Multiple Choice

Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher. How can this be portrayed on the production possibilities curve?


A) an outward shift of the curve
B) an inward shift of the curve
C) a movement from a point on the curve to a point inside the curve
D) a movement from a point inside the curve to a point closer to the curve

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