A Decrease in the Unemployment Rate Will Shift the PPF

question 70

True/False

A decrease in the unemployment rate will shift the PPF outward from the origin.

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Definitions:

Labor's Share

The portion of national income or the total output of the economy that is allocated to workers in the form of wages and salaries.

National Income

The total income earned by a country's residents and businesses, including wages, profits, and investment returns, reflecting the economic health of the nation.

Present Value

The value at present of future monetary sums or cash flow streams, determined by applying a given rate of return.

Interest

The payment made for the use of (borrowed) money.