Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

(a)[3]

The article is about structural unemployment. Explain what this means and whether it is the same as the natural rate of unemployment.

(b)[6]

To keep unemployment low, one government used fiscal policy. Analyse how this policy can change unemployment rates.

(c)[3]

Explain how the policies adopted by high-income economies towards ‘green energy’ changed between 2015 and 2022.

(d)[8]

Assess whether the article provides enough evidence to justify its conclusion that government intervention has little effect on economic outcomes.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Definition/description of structural unemployment: it occurs when the labour force’s skills do not match the jobs on offer; people looking for work cannot obtain a job because they lack the necessary skills, or because there are fewer jobs than jobseekers.

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