A Reduction in the Level of Unemployment Would Have Which

question 95

Multiple Choice

A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?

• A) It would shift the curve to the right.
• B) It would shift the curve to the left.
• C) It would not shift the curve;it would be represented by moving from a point inside the curve toward the curve.
• D) It would not shift the curve;it would be represented by moving from a point on the curve to a point outside the curve.

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Definitions:

Wage Rate

The amount of money paid to an employee for work performed, typically expressed per hour or unit of work.

Indifference Curve Analysis

A graphical representation used in microeconomics to show combinations of two goods between which a consumer is indifferent in preference.

Equilibrium Point

The state in a market where supply equals demand, leading to stable prices and quantities.

Normal Goods

Goods for which demand increases as the income of the buyer increases, and vice versa.