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What Causes an Increase in CAP

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What causes an increase in CAP?


Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Worker Productivity

The amount of goods and services produced per hour worked by an employee.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology, illustrating the concept of opportunity cost.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), demonstrating the trade-offs in production volume between different commodities.

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