Refer to Figure 15.2 for the following questions.
Figure 15.2
-In Figure 15.2,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?
A) It will rise.
B) It will fall.
C) It will remain constant.
D) There is not enough information to answer the question.

Question

Refer to Figure 15.2 for the following questions.
Figure 15.2 
-In Figure 15.2,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?
A) It will rise. 
B) It will fall. 
C) It will remain constant. 
D) There is not enough information to answer the question.

Quizplus · Accepted Answer

Moving from point A to point B represents an increase in the level of output, which will likely lead to a decrease in the unemployment rate (assuming the economy is operating below its potential output at point A). Therefore, the answer is A.

Refer to Figure 15.2 for the Following Questions