Use an article to analyse and evaluate potential government interventions to control an economy. (unemployment)
IN UK
What is the level of unemployment?
What are the trends in unemployment?
How do these compare to government targets?
What is causing the problems?
Demand-side causes E.g.:
Economic cycle
Components of AD e.g. lack of consumer/government/investment spending
Supply-side causes. E.g:
Rising global commodity prices
High labour costs
Poor workforce skills
Lack of infrastructure
What is causing the problems
Global economic causes. E.g.:
Exchange rate
Competition from lower wage economies
Falling demand in export markets
What policies will be most effective in tackling the main problems/causes identified?
DIFFERENT CAUSES REQUIRE DIFFERENT SOLUTIONS
Fiscal policy
Monetary policy
Supply-side policies
joyce
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