Changing patterns of consumption have meant that high-street retail shopping in regional market towns has become less popular as online retailing has grown. As a result, retail workers in these towns are increasingly affected by seasonal unemployment and rising structural unemployment.
Which one of the following is the most likely consequence of this change in the pattern of consumption?
Occupational immobility of former retail workers will make it more difficult for them to transition into expanding sectors, such as digital logistics.
Real wages in high-street retail will rise as struggling regional businesses compete to retain their existing staff.
Structural and seasonal unemployment in these market towns is likely to peak during the pre-Christmas winter holiday shopping season.
Geographical mobility of labour will spontaneously correct the decline in local economic activity without any external government intervention.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.