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.
a
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Jason is a Web page designer. He estimates that this summer, he has a 0.6 probability of making $10,000 and a 0.4 probability of making only $2,000. What is Jason's expected income this summer?
A) $12,000 B) $6,800 C) $6,000 D) $10,000
According to supply-siders, an switch from taxing income to taxing consumption to will
a. lead to a permanent increase in output-per-worker. b. lead to a temporary increase in output-per-worker. c. lead to a decline in output-per-worker. d. not change output-per-worker.