Day: November 29, 2022

Between 2000 and 2002 national output in the UK increased by 2%.

Over the same period the unemployment rate increased from 4% to 6%.

What would explain this?

Select ONE answer:

1. There was a decrease in labour productivity.
2. There was a decrease in the size of the labour force.
3. There was a fall in the rate of inflation.
4. Potential growth in national output was above actual growth.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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