Unemployment rose between Year 1 and Year 2. Table 1 gives information for the economy. The average weekly payment is paid to each person receiving unemployment-related benefits. Use 52 weeks in a year.
| Measure | Year 1 | Year 2 |
|---|---|---|
| People receiving unemployment-related benefits (million) | 1.20 | 1.45 |
| Average payment per recipient per week | £90 | £90 |
| Total government tax revenue (£ billion) | 910 | 895 |
Calculate the increase in annual government expenditure on unemployment-related benefits between Year 1 and Year 2.
Using the information in Table 1 and your answer to part (a), explain how the rise in unemployment is likely to affect the government's budget.
65 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.