During a recession, the economy experiences a) b) or c)? ?

a. Productive inefficiency because it moves to the point inside the PPF

b. Allocative inefficiency because the PPF shifts inwards 

c. No change in efficiency but the economy moves to a point inside the PPF 

Note: there was a fourth option that I picked but it was wrong which narrows it down to three three...please explain the answer so I can understand. 

Update:

These three* 

1 Answer

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  • Zirp
    Lv 7
    1 month ago

    For better answers you may want to translate the question to English

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