5 marksClassical Models of the Macroeconomy

CAPE Economics Unit 2 · 2010 · Paper 2 · Question 2(a)(ii)

Using the Classical Model, explain why disequilibrium employment exists.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

2(a)(i)Using the Keynesian 45° graphs, explain the difference between the 'recessionary gap' and the 'inflationary gap'.[10 marks]
2(b)(i)Define the term 'investment'.[2 marks]
2(b)(ii)Describe FOUR factors that influence investment.[8 marks]

More practice: the rest of this paper · more Classical Models of the Macroeconomy questions · all CAPE Economics Unit 2 past papers