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Ceteris Paribus,if Structural Unemployment Increases,the Economy Is

Question 128

Multiple Choice

Ceteris paribus,if structural unemployment increases,the economy is


A) Outside the production possibilities curve.
B) Inside the production possibilities curve.
C) On the fixed production possibilities curve.
D) On the production possibilities curve that shifts inwarD.At the natural rate of unemployment (frictional + structural) ,the economy is on the production possibilities curve.If any part of the natural rate of unemployment increases,the production possibilities curve shifts inward.

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