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2.3 Economic performance

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Question 122

An economy is experiencing two distinct labor market trends:

  • Trend 1: A deep national recession has led to a sharp contraction in consumer confidence and business investment, causing widespread layoffs across all service and manufacturing sectors.
  • Trend 2: The rapid rise of digital banking has led to the permanent closure of physical bank branches, leaving traditional bank tellers unemployed in rural towns where the only vacant posts are in forestry and tourism.

Which of the following correctly classifies the main type of unemployment arising from Trend 1 and Trend 2?

A

Trend 1: Cyclical unemployment; Trend 2: Structural unemployment

B

Trend 1: Structural unemployment; Trend 2: Cyclical unemployment

C

Trend 1: Frictional unemployment; Trend 2: Structural unemployment

D

Trend 1: Cyclical unemployment; Trend 2: Frictional unemployment

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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