How Will a Reduction in the National Unemployment Rate Affect

question 96

Multiple Choice

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF) ?

• A) It will cause the PPF to shift inward.
• B) It will cause the PPF to shift outward.
• C) It will move society to a point farther inside the PPF.
• D) It will move society outward to a point closer to or on the PPF.
• E) It will push society to a point outside its PPF.

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Definitions:

Investment

Allocation of resources, such as time, money, or effort, in hope of future benefits or returns.

Future Value

The eventual worth of an asset or cash that matches the value of a predetermined present sum.

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital and interest, earn interest as time passes.

Rate of Return

The uplift or shortfall in the value of an investment during a specific interval, portrayed as a percentage of the investment’s original pricing.