The table shows annual data for an economy.
| Year | Total spending (£ billion) | Number unemployed (million) |
|---|---|---|
| Year 1 | 520 | 1.10 |
| Year 2 | 478 | 1.70 |
Economists forecast that total spending will return to £520 billion in Year 3.
Using the data, explain which type of unemployment best accounts for the change between Year 1 and Year 2.
Explain what is likely to happen to total unemployment in Year 3 if the forecast occurs, and why unemployment is unlikely to fall to zero.
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.