The Production Possibility Frontier Will NOT Shift Outward Due to An

question 19

Multiple Choice

The production possibility frontier will NOT shift outward due to an:

• A) increase in the unemployment rate.
• B) increase in the labour force.
• C) improvement in technology.
• D) increase in worker productivity.

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Definitions:

Expected Inflation

The rate at which the general level of prices for goods and services is expected to rise.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the rate of unemployment and the rate of inflation in an economy over the short term.

Long-run Phillips Curve

A concept in economics indicating that in the long term, there is no trade-off between inflation and unemployment, represented as a vertical line at the natural rate of unemployment.

Money Supply Growth Rate

The speed at which the quantity of money circulating within an economy is growing.