If labor becomes more productive, the production possibilities frontier will
A. shift to inward, toward the origin.
B. remain constant, but output will increase as unemployment falls.
C. shift to outward away from the origin.
D. remain constant, but output will fall as less labor is needed to produce the same level of output.
Answer: A
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a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease
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A) unemployment rises. B) the employment-to-population ratio decreases. C) the employment-to-population rate rises. D) the labour force participation rate rises. E) both A and B are correct.
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