Economics 0455 · IGCSE · Employment and unemployment

Employment and unemployment — practice question

During 2020, in order to stop a pandemic from spreading, many governments shut restaurants and cafés for a limited period. What macroeconomic effect could result from such a policy?

  • ADemand for food to be consumed at home would rise.
  • BGross Domestic Product (GDP) would fall.
  • CThe profits from restaurants and cafés would fall.
  • DStaff working in restaurants and cafés would lose income.

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