Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3.Consider the following events: a.an increase in the unemployment rate
b.a decrease in a nation's money supply
c.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?

Question

Figure 2.3  Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3.Consider the following events: a.an increase in the unemployment rate
b.a decrease in a nation's money supply
c.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?

Quizplus · Accepted Answer

A war that kills a significant portion of a nation's population (event c) could cause a movement from Y to W, as it would reduce the labor force and potentially decrease the nation's productive capacity, leading to a shift in the production possibilities.

Figure 23 Figure 2