Economics 0455 · IGCSE · Employment and unemployment
Employment and unemployment — practice question
Pakistan’s annual inflation rate and economic growth rate both declined from 2012 to 2013. Some economists argued that the Government ought to reduce government spending in order to push inflation lower still. If inflation fell, economic activity might rise and unemployment could drop.
(a)[2]
Define what is meant by ‘unemployment’.
(b)[4]
Explain two reasons for economic growth.
(c)[6]
Analyse why a reduction in the inflation rate may lower a country’s unemployment rate.
(d)[8]
Discuss whether a fall in government spending will lower inflation.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “People who do not have jobs but are willing and able to work” …