An increase in Canada's unemployment rate would be represented by:
A) a movement along the production-possibilities curve.
B) a shift of the production-possibilities curve to the left.
C) a shift of the production-possibilities curve to the right.
D) no change in the production-possibilities curve but the combination of goods produced would be to the left of the current production-possibilities curve.

Question

Quizplus · Accepted Answer

An increase in unemployment means that not all resources are being used efficiently, so the economy operates inside the production-possibilities curve, not shifting it.

An Increase in Canada's Unemployment Rate Would Be Represented By