CAIE A-Level Economics 9.3.2 Equilibrium/disequilibrium unemployment

CAIE A-Level Economics 9.3.2 Equilibrium/disequilibrium unemployment
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise separating equilibrium and disequilibrium unemployment, including hysteresis after recessions or sectoral change.

How this is tested

  • identify hysteresis when long-term unemployment causes workers' skills to become outdated
  • explain why unemployment may persist after recovery from recession or structural change

Question 16

[Maximum number: 1]

What is a definition of hysteresis unemployment?

A

people who become temporarily unemployed because it takes a short period of time to find a job after they leave school

B

people who become unemployed when there is a recession but who will find employment as the economy comes out of recession

C

people who become unemployed for a long period of time due to a loss of job skills and work experience while unemployed

D

people who become unemployed when established firms close and new firms are created as technology advances