Ceteris Paribus,if Structural Unemployment Increases,the Economy Is

question 78

Multiple Choice

Ceteris paribus,if structural unemployment increases,the economy is

• A)Outside the production possibilities curve.
• B)Inside the production possibilities curve.
• C)On the fixed production possibilities curve.
• D)On the production possibilities curve that shifts inwarD.At the natural rate of unemployment (frictional + structural),the economy is on the production possibilities curve.If any part of the natural rate of unemployment increases,the production possibilities curve shifts inward.

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