If a nation's largest trading partner imposes widespread tariffs on imports, this is most likely to cause a rise in cyclical unemployment in the exporting nation because
the domestic currency will appreciate as export volumes fall, making domestic service industries less competitive.
the volume of export sales will contract, reducing aggregate demand and lowering the derived demand for labor.
domestic firms will immediately hit severe capacity constraints due to unsold inventory, leading to structural mismatch in the labor market.
the cost of imported raw materials will rise dramatically, inducing a wage-price spiral that increases frictional 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.