Unemployment And Productive Inefficiency

Almost all nations have at one point or another experienced widespread unemployment of resources. That is, they have operated inside of their production possibilities curves. In the depths of the Great Depression of the 19 0s, 20 percent of Canada's workers were unemployed and one-third of Canadian production capacity was idle. In the last half of the 1990s, several countries (for example, Argentina, Japan, Mexico, and South Korea) operated inside their production possibilities curves, at least temporarily, because of substantial declines in economic activity.

McConnell-Brue-Barbiero: I I. An Introduction to I 2. The Economic Problem: I I © The McGraw-Hill

Microeconomics, Ninth Economics Scarcity, Wants, and Companies, 2003

Canadian Edition Choices chapter two • the economic probLem: scarcity, wants, and choices

Investment and economic growth, selected countries

Nations that invest large portions of their national output tend to achieve high growth rates, measured here by output per person. Additional capital goods make workers more productive, which means greater output per person.

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