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Assume the Economy Moves from a Situation with Full Employment

Question 114

Multiple Choice

Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher. This can be portrayed as:


A) ​an inward shift of the production possibilities curve.
B) ​an outward shift of the production possibilities curve.
C) ​a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve.
D) ​a movement from a point on the production possibilities curve to a point inside the production possibilities curve.

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