A major decline in the domestic heavy manufacturing sector has left thousands of skilled steelworkers unemployed in the north of a country, while tech firms in the south are struggling to fill vacancies for software engineers.
This situation is best classified as which type of unemployment, and which policy is most appropriate to address it?
Frictional unemployment; improving the flow of information through national job databases.
Structural unemployment; government-funded retraining programmes and geographic relocation subsidies.
Cyclical unemployment; an increase in government spending to boost aggregate demand.
Structural unemployment; expansionary monetary policy to lower interest rates and encourage investment.
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.