Reducing involuntary unemployment ?
Correct answer: A. Helps the economy move on the to Production Possibility Frontier
- A. Helps the economy move on the to Production Possibility Frontier
- B. Helps shift the economy's Production Possibility Frontier outwards
- C. Helps the economy move along its Production Possibility Frontier
- D. Helps the economy move inside the Production Possibility Frontier
Explanation
Reducing involuntary unemployment allows currently idle resources to be used, moving the economy from inside its production possibility frontier onto the frontier. The frontier itself shifts outward only when productive capacity increases.
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