A reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.

a. True

b. False

It is true that a reduction in the unemployment rate will cause the nation's production possibilities curve to shift outwards.

Answer: Option A

Explanation:

Production possibility curve is the curve of the economy which shows the combination of two goods that can be produced by employing the resources where maximum amount of goods produced can be shown.

The curve shifts outward when there is growth in the resources of the economy leading to more growth. So when there is decrease in unemployment, it means more people are employed and there is more production.