Unemployment would cause an economy to:

(i) produce outside its production possibilities frontier.
(ii) produce inside its production possibilities frontier.
(iii) produce on its production possibilities frontier.
(iv) experience an inward shift of its production possibilities frontier.

Question

Unemployment would cause an economy to:
 
(i) produce outside its production possibilities frontier.
(ii) produce inside its production possibilities frontier.
(iii) produce on its production possibilities frontier.
(iv) experience an inward shift of its production possibilities frontier.

Unemployment would cause an economy to:

(i) produce outside its production possibilities frontier.

(ii) produce inside its production possibilities frontier.

(iii) produce on its production possibilities frontier.

(iv) experience an inward shift of its production possibilities frontier.

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Weekly leaderboard

Unemployment would cause an economy to: (i) produce outside its production possibilities frontier. (ii) produce inside its production possibilities frontier. (iii) produce on its production possibilities frontier. (iv) experience an inward shift of its production possibilities frontier.