Economics 9708 · AS & A Level · Price stability and inflation
Price stability and inflation — practice question
(a)[3]
The article refers to 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 influence unemployment rates.
(c)[3]
Explain how the policies of high-income economies towards ‘green energy’ changed between 2015 and 2022.
(d)[8]
Assess whether the article provides enough evidence to support 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: “Structural unemployment happens when the skills of the labour force do not match the jobs available; people search for work but cannot get it because they do not have the required skills, or because the number of jobs offered is smaller than the number of people looking for work.” …