CAIE A-Level Economics 9.3.7 Unemployment policies

CAIE A-Level Economics 9.3.7 Unemployment policies
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

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

How this is tested

  • 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

Question 16

[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