Whai is likely to be the impact of efforts towards reducing unemployment on the production potential of the economy? Explain.

Whai is likely to be the impact of efforts towards reducing unemployme

1.	Whai is likely to be the impact of efforts towards reducing unemployment on the production potential of the economy? Explain.
Answer» Solution :Peducing unemployment has no EFFECT on the production POTENTIAL of the COUNTRY. It is because peoduction potential is determined sassuming full EMPLOYMENT. Unemployment INDICATED that the country is operating below potential. Reducing unemployment simply helps in reaching potential.