Suppose the Current Unemployment Rate Is 15 Percent

question 180

Multiple Choice

Suppose the current unemployment rate is 15 percent. If it rises to 20 percent

• A) the economy will move up along the production possibilities curve.
• B) the economy will move closer to the production possibilities curve.
• C) the production possibilities curve will shift inward.
• D) the economy will operate farther inside the production possibilities curve.

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Definitions:

Attribute Inspection

An inspection that classifies items as being either good or defective.