what is the effect on PPC when there is massive unemployment? How about, when there is underemployment? Are they both the same?

Dear Student
  • Massive unemployment implies that people who were previously employed, are now unemployment.
  • Underemployment implies that people are working below their capacity.
In both these situations, the economy would be producing at a level below the PPC, i.e., inside the PPC.
Hope this information clarifies your doubts. Keep posting :-)
Regards

  • 1
What are you looking for?