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A Decrease in the Unemployment Rate Will Shift the PPF

question 70

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


Definitions:

Allocation of Resources

The distribution of scarce resources among various uses or people within an economy.

Economic Profits

The difference between a firm's total revenue and its total expenses, including both explicit and implicit costs.

Product Price

The amount of money required to purchase a specific product or service.

Production Capacity

The maximum output that a business can produce in a given period under normal conditions.

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