Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

(a)[3]

Identify three changes in the economic indicators in Table 1 that could be used to show why households ought to have benefited from the economic recovery.

(b)[4]

Use evidence in the information to explain why some households ‘faced a fall in living standards’ even though unemployment kept falling.

(c)[5]

Analyse why entrepreneurs in the private sector would have been encouraged to create more jobs during the economic recovery.

(d)[8]

Identify two economic policies in the information and consider to what extent there is evidence to show that, although these policies may bring about a recovery of the economy, the gains are uneven.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Reduced inflation rates (5.2% → 1.2%)

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