AO2 (3 marks)/AO3 (3 marks)
AO2 and AO3
- A fall in unemployment may result in workers gaining an income from their employment. This may increase consumer spending within the Vietnamese economy
- An increase in total demand may therefore result in more demand than the economy can supply
- This might result in demand pull inflation as costs and prices rise
- A fall in unemployment may also result in there being fewer workers available in the Vietnamese economy
- This could result in higher costs of production for firms as they must increase wages to attract workers
- Higher costs of production may cause cost push inflation for the Vietnamese economy
(6)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
- Demonstrates basic knowledge and understanding by developing relevant points. Limited application of economic terms, concepts, theories and calculations (AO2).
- Information presented will lack selectivity and organisation. Interpretation of economic information will be limited, with a lack of analysis of issues (AO3).
Level 2
3-4
- Demonstrates partial knowledge and understanding by developing relevant points. Partial application of economic terms, concepts, theories and calculations (AO2).
- Information presented will demonstrate some selectivity and organisation. Interpretation of economic information will be good, with some analysis of issues (AO3).
Level 3
5-6
- Demonstrates clear knowledge and understanding by developing relevant points. Appropriate application of economic terms, concepts, theories and calculations (AO2).
- Information presented will demonstrate excellent selectivity and organisation. Interpretation of economic information will be excellent, with a thorough analysis of issues (AO3).
Question
Number
Indicative content
Mark