If the Unemployment Rate Increases from 10% to 14%, the Economy

question 209

Multiple Choice

If the unemployment rate increases from 10% to 14%, the economy will

• A) move closer to a point on the ppf.
• B) move away from the ppf toward the origin.
• C) remain on the ppf.
• D) remain on the origin.

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, indicating how prices are rising on average.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used to indicate inflation.

Inflation Rate

The percentage rate of increase in the price level of goods and services in an economy over a period of time.

Technological Change

The overall process of invention, innovation, and diffusion of technology or processes.