Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

(a)[4]

What is economic growth, and does it necessarily eliminate poverty and inequality?

(b)[5]

In the circumstances described in the article why might a country decide that lowering its exchange rate would help its economy?

(c)[5]

What evidence is there in the article that monetary policy had failed to improve the economies after the crisis?

(d)[6]

Explain what is meant by a ‘prisoner’s dilemma’ and analyse why the term was applied in the article to a market economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Definition of growth; rise in output over time

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