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:

Related Resource

Resources that are connected or relevant to one another in such a way that the presence, absence, or alteration of one can affect the other.

Labor Demand

Labor demand is the quantity of workers that employers are willing and able to hire at a given wage rate, within a certain period.

Chemical Equipment

Machinery and tools used for chemical processing, including reactors, distillation columns, and pumps, among others.

Substitution Effect

A change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less expensive ones.