During 2020, gold prices declined in Vietnam. In that year, Vietnam ranked among Asia’s strongest-performing economies. Unlike several Asian economies, Vietnam did not go into recession. Its overall output, exports and imports all rose. Unemployment did rise from 2.0% to 2.3% but still stayed very low. One aim of fiscal policy may be to reach full employment.
(a)[2]
Identify the way a fall in the price of gold would be represented on a demand curve for gold.
(b)[4]
Explain any two disadvantages caused by a recession.
(c)[6]
Analyse the reasons a country may demand more imports.
(d)[8]
Discuss whether fiscal policy can achieve full employment or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Movement along the demand curve downward (1), from left to right / extension (1).” …