Asked by Amber Abugharbieh on Jun 20, 2024
Verified
A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outward.
Unemployment Rate
The percentage of the labor force unemployed at any time.
Production Possibilities
Describes combinations of output that a society can produce using all available resources and technology efficiently.
- Identify the factors affecting a nation's production possibilities and economic growth.
Verified Answer
CT
Caleb TumblesonJun 22, 2024
Final Answer :
False
Explanation :
The production possibilities curve (PPC) represents the maximum output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized. A reduction in the unemployment rate does not directly cause the PPC to shift outward; instead, it indicates that the economy is moving closer to its existing PPC by utilizing previously idle resources. An outward shift in the PPC would require an increase in the economy's resources or an improvement in technology.
Learning Objectives
- Identify the factors affecting a nation's production possibilities and economic growth.
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