Unemployment Is Represented by Points 1 Inside the Macro PPF

question 228

Multiple Choice

Unemployment is represented by points 1 inside the macro PPF.
2 outside the macro PPF.
3 to the left of LAS.
4 to the right of LAS.

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4
• E) 1 only

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Definitions:

Surplus

An excess of something, often used in economic contexts to describe a situation in which supply exceeds demand.

Shortage

A situation where the demand for a product exceeds its supply at the current price, leading to a scarcity of the product in the market.

Supply Shift

A change in the quantity of a product or service that producers are willing and able to sell at all possible prices in the market.

Increase

A rise in quantity, value, or some other measure, indicating growth or gain in specifics.