(a)[4]
Briefly explain the difference between monetary policy and fiscal policy, and identify one example of each policy from the article.
(b)[3]
Explain what is meant by ‘technological unemployment’ and suggest why it could be permanent among the less skilled and elderly.
(c)[5]
The article refers to ‘equilibrium at less than full employment’. Explain with the aid of an aggregate demand and aggregate supply diagram how an economy can be in equilibrium at less than full employment.
(d)[8]
Contrast the opposing views in the article about the policies a government should adopt in a time of recession and consider what evidence is provided to support each policy.