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2.1.3 Employment and unemployment

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Question 14

An economy is experiencing a rise in its cyclical (demand-deficient) unemployment rate. Which of the following combinations of macroeconomic developments is the most likely cause of this increase?

A

An appreciation of the exchange rate alongside a rise in the marginal propensity to save (MPSMPSMPS)

B

A depreciation of the exchange rate combined with an increase in government expenditure (GGG)

C

A reduction in the basic rate of income tax alongside a sustained rise in business investment (III)

D

A decrease in the marginal propensity to import (MPMMPMMPM) accompanied by a reduction in interest rates

Markscheme

2.1.3 Employment and unemployment Questions

  1. A Level
  2. /Economics
  3. /2.1.3 Employment and unemployment

47 exam-style questions on Edexcel A A Level Economics 2.1.3 Employment and unemployment. Each one has a worked solution and a mark scheme showing where the marks go.

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