Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

There are two statements about forms of unemployment. 1 Unemployment will result if people are paid not to work, and are taxed when they do work. 2 A person is looking for work, but because of negative economic growth, cannot obtain employment. Which row gives the best description of the two types of unemployment in these statements?

  • A1 cyclical; 2 structural
  • B1 voluntary; 2 frictional
  • C1 structural; 2 cyclical
  • D1 voluntary; 2 involuntary

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