Question

On a production possibilities curve, where would a society dealing with unemployment be producing?

a.inside the curve
b.low on the curve
c.outside the curve
d.high on the curve

Answer 1

Yes the correct answer was

A) inside the curve

Thanks

Answer 2

Unemployment willl cause the production possibilities to shift inwards, so I the answer would be option A.
During massive unemployment period, production possibilities will heavily decrease due to the lower amount of capital and the lower amount of consumers for that potential product (which happen because the consumers lose a lot of its purchasing power). This situation will cause the curve to move inwards.