A government increases its public expenditure on vocational training programs and subsidises degree apprenticeships in high-demand technical sectors.
This policy is most likely designed to
control short-run inflationary pressures by reducing aggregate demand.
decrease the participation rate of the labour force by extending the duration of formal education.
increase the occupational mobility of labour and expand the economy's productive capacity.
reduce structural unemployment by lowering the real equilibrium wage rate across the economy.
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.