A fall in unemployment raises household incomes but creates recruitment difficulties for firms. Which evaluation is best?
Low unemployment benefits only the government
Firms must benefit because wages always fall
Household spending must fall
Benefits from higher incomes and tax revenue may be offset by wage pressure and labour shortages
29 exam-style questions on OCR GCSE Economics 3.2 Low unemployment, covering 3.2.1 Employment and unemployment, 3.2.2 Measuring unemployment, 3.2.3 Calculate the unemployment rate, 3.2.4 Analyse unemployment figures, 3.2.5 Types of unemployment, and 3.2.6 Causes and consequences of unemployment. Each one has a worked solution and a mark scheme showing where the marks go.