CAPE Economics Unit 2 · 2008 · Paper 2 · Question 2(b)
Explain why disequilibrium employment exists according to the classical model.
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Practise this questionOther parts of this question
- 2(a)(i)State the level of unemployment referred to in the statement that some amount of unemployment still exists when the economy is in equilibrium.[3 marks]
- 2(a)(ii)Draw a graph showing equilibrium employment.[9 marks]
- 2(a)(iii)On the same graph, show disequilibrium unemployment.[3 marks]
- 2(c)Explain how, according to the classical view, the economy goes back to equilibrium employment from a position of disequilibrium.[10 marks]
- 2(d)Describe FOUR types of unemployment.[20 marks]
More practice: the rest of this paper · more Classical Models of the Macroeconomy questions · all CAPE Economics Unit 2 past papers