A decrease in the unemployment rate will shift the PPF outward from the origin.

Name: A decrease in the unemployment rate will shift the PPF outward from the origin.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The unemployment rate does not directly impact the production possibilities frontier (PPF), which represents the maximum combinations of goods that can be produced with given resources and technology. Other factors such as changes in resources, technology, or trade can shift the PPF outward from the origin.

A Decrease in the Unemployment Rate Will Shift the PPF