Economics 2281 · O Level · Employment and unemployment
Employment and unemployment — practice question
In 2018, the US recorded its lowest unemployment rate in 18 years. Cyclical unemployment was extremely low, and inflation was also low. The US additionally experienced an increase in labour productivity. Even so, it was less successful at cutting poverty. In 2018, around $12\%$ of Americans were living in poverty.
(a)[2]
Define cyclical unemployment in one sentence.
(b)[4]
Explain two ways a firm could boost the productivity of its workers.
(c)[6]
Analyse the advantages that a low rate of inflation can bring.
(d)[8]
Discuss whether a decline in a country’s unemployment rate will reduce poverty in that country.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.