Figure 2-6

-Refer to Figure 2-6.Unemployment could cause this economy to produce at which point(s)?

Question

Figure 2-6
 
-Refer to Figure 2-6.Unemployment could cause this economy to produce at which point(s)?

Quizplus · Accepted Answer

Unemployment leads to a decrease in production due to a decrease in labor input. This would decrease the economy's output, resulting in a shift from the production possibilities curve (PPC) at point A to point C, and from point G to point F. The PPC would not be affected by unemployment at points B, D, or E.

Figure 2-6 -Refer to Figure 2-6.Unemployment Could Cause This Economy to Produce