Which of the following scenarios is most likely to lead to an increase in frictional unemployment in an economy?

An increase in the national income tax rate, which discourages long-term unemployed individuals from actively seeking work, reducing the labour force participation rate.

An increase in statutory redundancy payments, allowing laid-off workers to spend more time searching for an optimal job match.

A sudden contraction in the gross domestic product ( $G D P$ ) of key trading partners, leading to a significant drop in aggregate demand ( $A D$ ) and domestic production.

The rapid automation of assembly lines in manufacturing, leaving manual workers redundant while firms seek software programmers.

Which of the following scenarios is most likely to lead to an increase in frictional unemployment in an economy?

An increase in the national income tax rate, which discourages long-term unemployed individuals from actively seeking work, reducing the labour force participation rate.

An increase in statutory redundancy payments, allowing laid-off workers to spend more time searching for an optimal job match.

A sudden contraction in the gross domestic product ( $G D P$ ) of key trading partners, leading to a significant drop in aggregate demand ( $A D$ ) and domestic production.

The rapid automation of assembly lines in manufacturing, leaving manual workers redundant while firms seek software programmers.

2.3 Economic performance

Question 92

Markscheme

2.3 Economic performance

Question 92

Markscheme

2.3 Economic performance

Question 92

2.3 Economic performance Questions

2.3 Economic performance

Question 92

2.3 Economic performance Questions