What is assumed in the explanation of cyclical unemployment? A Employers employ more labour if aggregate demand decreases. B Exchange rates ensure the value of imports is always equal to the value of exports. C Interest rates make planned investment equal to planned savings. D Money wages are inflexible in a downward direction.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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