Economy, asked by ruthlessqueen, 1 year ago

massive unemployment will shift the PPF 2 left defend or refute

Answers

Answered by deepshika1512
26
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the given statement is refuted because massive unemployment does not decrease the capacity of economy to produce so there will be no shift of PPF however economy will operate at some point inside the PPF duty universalisation of human resources .

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Answered by tyzeadam1pdc3ii
7

Hello there..
Firstly iam defendin the statement.it is true that unemployment will shift the PPF to left,

This is because in order to the PPF curve to operate there are assumptions to be taken and some of the assumptions are
-resources should be fully employed
-resources must be substitute
And many more...

By consideration of the assumption of "resources must be fully employed" it means all the resources available in a particular place should be used, that means even people as labour in that place should be used for production activities so if people are unemployed it is obvious that PPF will move to left (inefficiency) because of having no enough people for production..

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