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

Name: A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

A reduction in the unemployment rate means that more resources (labor) are being used, moving the economy closer to its production possibilities frontier, but it does not shift the curve itself. The curve shifts outward with an increase in resources or technology.

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