In recent years, rapid advancements in artificial intelligence and a national shift toward a net-zero carbon economy have accelerated the decline of traditional manufacturing and administrative roles. While these transitions promise long-term efficiency gains, they have triggered a widening regional skills gap and localized job losses.
Sluggish global trade volumes and high domestic energy costs mean that retraining programs struggle to keep pace with the redundancies. With inflation remaining sticky due to supply-chain bottlenecks, space for expansionary monetary policy is severely limited. A significant increase in structural unemployment seems inevitable, and in the short run, supply-side solutions take years to yield results.
Extract B states: 'A significant increase in structural unemployment seems employment-inevitable, and in the short run, supply-side solutions take years to yield results.'
Evaluate alternative measures which can be used to reduce unemployment.
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.