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CAIE A-Level Economics 9.3.7 Unemployment policies

Practise choosing unemployment policies, matching them to unemployment types, and evaluating their likely effectiveness.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • select expansionary fiscal policy as a demand-side response to cyclical unemployment
  • compare supply-side policy effects on structural, long-term and cyclical unemployment
  • evaluate policy trade-offs involving benefits, taxes, vacancy information and incentives

9.3.7—Unemployment policies question 1

[Maximum number: 1]

What describes a Keynesian measure to reduce cyclical unemployment?

A

adopting a supply-side policy to retrain unskilled workers

B

allowing the private sector to take over the supply of merit goods

C

increasing the ratio of capital equipment to manual labour in production

D

using fiscal policy to increase effective demand

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