An increase in the unemployment rate would be shown on a production possibilities curve by
A)shifting the entire curve outward.
B)shifting the entire curve inward.
C)moving from a point on or near the curve to a point closer to the origin,rather than shifting the entire curve.
D)moving from a point inside the curve to a point on or at least closer to,the curve,rather than shifting the entire curve.

Question

Quizplus · Accepted Answer

An increase in unemployment means that not all resources are being used efficiently, so the economy would operate inside the production possibilities curve, moving closer to the origin.

An Increase in the Unemployment Rate Would Be Shown on a Production