The Canadian government has introduced a number of policy measures designed to encourage more women to enter the labour force. Canada's labour force has reduced as its population has aged. The number of workers and their output are influenced by changes in the country's foreign exchange rate and consumer expenditure. In 2018, the Canadian dollar fell in value while Canadian consumer expenditure increased.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. [2] Those who are economically active (2).
2. [1] Those willing (1) and able to (work) (1).
3. [1] The employed (1) and the unemployed (1).
4. [1] A fall in the death rate / increase in life expectancy (1) resulting from better healthcare / better nutrition / higher income / better lifestyles (1).
5. [1] A fall in the birth rate (1) resulting from higher cost of raising children / fall in child benefit / increase in women working / increase in use of family planning / fall in infant mortality / reduction in need for children to support parents due to provision of state pensions or healthcare (1).
6. [1] Rise in net emigration of mainly young-aged people (1) resulting from higher incomes abroad / increase in job opportunities abroad (1).
7. [1] Foreign exchange rate is the price / value of one currency in terms of another currency or currencies (1) a fall in the value of a foreign exchange rate means that the domestic currency buys less foreign currency / depreciates (1).
8. [1] A fall will reduce price of exports (1) raise demand for exports (1) increase export revenue (1) money flows into country which will reduce Balance of Payments deficit (1) if demand is elastic (1).
9. [1] Increase price of imports (1) reduce demand for imports (1) reduce import expenditure (1) reduces the money flows out of the country which reduces the Balance of Payments deficit (1) if demand is elastic (1).
10. [1] may increase total (aggregate) demand which may encourage firms to expand
11. [1] cause economic growth
12. [1] reducing cyclical unemployment
13. [1] raise tax revenue enabling the government to spend more on education and healthcare
14. [1] eliminate / reduce deflation
15. [1] raise inflation to the inflation target rate
16. [1] may cause demand-pull inflation especially if economy is at full capacity
17. [1] may increase spending on imports
18. [1] may divert exports to the home market
19. [1] may cause a deficit on the current account of the balance of payments
20. [1] may reduce long run economic growth as resources may be diverted away from producing capital goods
21. [1] may increase the consumption of demerit goods