Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

(a)[2]

Compare the change in projected real GDP growth of Japan with that in the US between 2022 and 2025, using the information in Table 1.1.

(b)[2]

With the help of a production possibility curve (PPC) diagram, demonstrate the likely impact of higher investment in AI on the Japanese economy in the long run.

(c)[4]

With the help of a demand and supply diagram, consider how extra investment in AI affects the price and output of a US carmaker.

(d)[6]

Assess the possible effect on unemployment in Japan of increased investment in AI.

(e)[6]

Assess the likely effect of the growth of AI on the specialisation and trade of a country such as Japan.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Each country records positive growth throughout the period.

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