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How does unemployment affect the ppc?

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How does unemployment affect the ppc?

Posted by Keshav Cool 8 years, 3 months ago

CBSE > Class 12 > Economics

1 answers

Debarati Mandal 8 years, 3 months ago

Labour intensive technology is a way to produce goods in an economy. If there is unemployment, resources will not be utilized upto it's potential. When production is below it's potential due to unemployment, it would mean that the concerned economy is operating inside the PPC curve. There will be no shift in the PPC since resources and technology is same.

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