O-LevelEconomicsGovernment and the macroeconomy2281/13 · Oct/Nov 2025 · Q231 Mark
A country experiences a significant fall in unemployment. What is a possible advantage and a possible disadvantage of such a fall?
Apossible advantage: fall in government spending on unemployment benefits, possible disadvantage: fall in labour disputes
Bpossible advantage: fall in tax revenue, possible disadvantage: fall in poverty
Cpossible advantage: rise in living standards, possible disadvantage: rise in inflation rate
Dpossible advantage: rise in output, possible disadvantage: rise in labour mobility
✓ Correct answer
C: possible advantage: rise in living standards, possible disadvantage: rise in inflation rate
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