Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

A country records a high investment-to-GDP ratio and strong economic growth. If the net capital inflow from abroad is zero, what cost must be incurred for growth of this kind?

  • Aan increase in taxation
  • Bincreased consumption of luxury goods by richer residents
  • Cincreased imports of goods from abroad
  • Dthe sacrifice of present consumption by residents of the country

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI