If the economy were at full employment and is producing at point Y,





A. the unemployment rate would increase.



B. the unemployment rate would decrease.



C. the production possibilities frontier would have shifted inward.



D. the production possibilities frontier would have shifted outward.

C. the production possibilities frontier would have shifted inward.

Economics

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In a perfectly competitive market, in the long run, arbitrage profits will be bid away

Indicate whether the statement is true or false

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The Phillips curve shows the possible combinations of ________ and ________

a. potential output; the interest rate b. the interest rate; the unemployment rate c. the price level; real output demanded d. the inflation rate; the unemployment rate

Economics