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Question
Which of the following illustrates a decrease in the unemployment using the PPC?
Options
A movement down along the PPC
A rightward shift of the PPC
A movement from a point on the PPC to a point inside the PPC
A movement from a point inside the PPC to a point towards the PPC
MCQ
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Solution
A movement from a point inside the PPC to a point towards the PPC
Explanation:
Unemployment means producing inside the PPF. Moving from a point inside the PPC towards the PPC means using idle resources more fully, so unemployment decreases.
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