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2.3 Economic performance

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Question 81

An economy has a working-age population of 40 million. Initially, 10 million of these individuals are economically inactive, and 27 million are employed.

Suppose 1 million of the economically inactive individuals actively enter the labor market looking for work, of whom 400,000 400,000\,400,000 successfully find employment immediately, while the rest remain unemployed.

Which of the following correctly identifies the new labor force participation rate (LFPR) and the new unemployment rate (UR) (rounded to one decimal place)?

A

LFPR is 77.5%77.5\%77.5% and UR is 11.6%11.6\%11.6%

B

LFPR is 72.5%72.5\%72.5% and UR is 12.0%12.0\%12.0%

C

LFPR is 77.5%77.5\%77.5% and UR is 9.7%9.7\%9.7%

D

LFPR is 75.0%75.0\%75.0% and UR is 11.6%11.6\%11.6%

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

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.

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