Discuss the view that high levels of employment are always beneficial for an economy

AQA A-Level Economics Paper 1 June 2024

Discuss the view that high levels of employment are always beneficial for an economy. (25 marks)

Plan

  • Paragraph 1
    • Argument: high levels of employment are beneficial as this can stimulate further economic growth
    • Diagram: increase in AD, multiplier effect
    • Evaluation: depends on consumer confidence
  • Paragraph 2
    • Argument: high levels of employment can be damaging as they can suggest the economy is experiencing a positive output gap
    • Diagram: AD at full capacity
    • Evaluation: depends on investment by both government and firms, accelerator

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