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CAIE A-Level Economics AS 4.5.4 Consequences of Unemployment Questions

Practise analysing how unemployment changes output, tax revenue, welfare spending, living standards, inflation, aggregate demand and the wider economic cost.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Evaluate the economic consequences and costs of unemployment for output, taxation, welfare, living standards, inflation and aggregate demand.

CAIE A-Level Economics AS 4.5.4 Consequences of Unemployment Questions question 1

[Maximum number: 1]

The graph gives the percentage unemployed for all people aged 16 and over, and for young people aged 16-24.

Figure for Question CAIE A-Level Economics AS 4.5.4 Consequences of Unemployment Questions question 1 — CAIE A-Level Economics AS

What is the consequence for consumer expenditure on products consumed by the 16-24 age group over the period 2010-2020?

A

a fall in consumer expenditure across the whole period

B

an initial fall in consumer expenditure followed by a rise

C

an initial rise in consumer expenditure followed by a fall

D

a rise in consumer expenditure across the whole period

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