Hawaii's economy has expanded because of tourism, but this sector's growth has also driven up inflation in this US island state. It is estimated that 9% of Hawaii's population were living in poverty in 2022. Many families found it hard to save. Young workers were able to move away because labour mobility between US states is high. However, Hawaii is now dealing with an ageing population, including many more retired people.
(a)[2]
Define the term labour mobility.
(b)[4]
Explain the effects that an ageing population has on spending and saving levels.
(c)[6]
Analyse how growth in tourism can increase inflation in an economy.
(d)[8]
Discuss whether or not fiscal policy works well in reducing poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Workers’ ability to move between occupations” …