A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outward.

Name: A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outward.
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Question

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A reduction in the unemployment rate moves the economy closer to its existing production possibilities curve, but it does not shift the curve itself outward. An outward shift would require an increase in resources or technological advancement.

A Reduction in the Unemployment Rate Will Cause the Nation's