Economics · May / June 2022 · Paper 11 · Question 21

An economy experiences a recession and moves from full employment to 5% unemployment. Which movement from X to Y on the PPC diagram shows the consequence for the economy?

1. APPC diagram A: X on the curve, Y inside the curve
2. BPPC diagram B: X on the outer curve, Y on the inner curve
3. CPPC diagram C: X on the curve, Y on the curve
4. DPPC diagram D: X outside the curve, Y on the curve

As printed in the paper