Figure 14.2
-In Figure 14.2,given the economy is at point A in year 1 and point B in year 2,what will happen to the unemployment rate in year 2?

Question

Figure 14.2 
-In Figure 14.2,given the economy is at point A in year 1 and point B in year 2,what will happen to the unemployment rate in year 2?

Quizplus · Accepted Answer

Point B is to the right and above Point A on the production possibilities curve, indicating an increase in economic output. This increase in production typically leads to a decrease in the unemployment rate, but we cannot say for certain without more information about the labor market and other factors affecting employment. Therefore, the best choice is A) It will rise because this is the most likely outcome.

Figure 14.2 -In Figure 14.2,given the Economy Is at Point a in Point