In late 2023, the US Bureau of Labor Statistics (BLS) reported that the national unemployment rate hovered around 3.7%, remaining near historic lows. Economists suggested that this extremely tight labor market was operating below the Non-Accelerating Inflation Rate of Unemployment (NAIRU), raising concerns about capacity constraints and wage-price pressures.
Discuss the view that achieving and maintaining an extremely low level of unemployment is always beneficial for an economy.
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.