An economy produces capital and consumer goods. Discuss the impact on the PFF due to the following: a) The discovery of a new source of oil. b) The unemployment rate in the economy has decreased by 5%. c) Improved technology that impacts the production of capital goods.

An economy produces capital and consumer goods. Discuss the impact on the PFF due to the following: a) The discovery of a new source of oil. b) The unemployment rate in the economy has decreased by 5%. c) Improved technology that impacts the production of capital goods.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 3SQP

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Question

An economy produces capital and consumer goods. Discuss the impact on the PFF due to the following:

a) The discovery of a new source of oil.

b) The unemployment rate in the economy has decreased by 5%.

c) Improved technology that impacts the production of capital goods.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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