Ceteris paribus,if seasonal unemployment increases,the seasonally adjusted 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.Cyclical unemployment moves an economy inside the curve.Seasonal unemployment will not affect a seasonally adjusted economy.That is,the economy is on a fixed production possibilities curve.
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