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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

Encouraging growth
in the private sector of the economy; when aggregate demand is growing, 
firms will probably want to increase output to meet demand, and so will hire more labour 
(c) 
Encouraging training in job skills
, as there might be a high level of unemployment amongst 
unskilled workers, and at the same time a shortage of skilled workers – a government can help to 
finance training schemes, in order to provide a 'pool' of workers who have the skills that firms 
need and will pay for 
(d) 
Offering grant assistance to employers
in key regional areas 
(e) 
Encouraging labour mobility
by offering individuals financial assistance with relocation expenses, 
and improving the flow of information on vacancies 
Other policies may be directed at reducing real wages to market clearing levels. 
(a) Abolishing 
closed shop 
agreements, which restrict certain jobs to trade union members 
(b) Abolishing
 minimum wage regulations
, where such regulations exist 
QUESTION 
Types of unemployment
 
Match the terms (a), (b) and (c) below with definitions A, B and C. 
(a) 
Structural unemployment (c) 
Frictional unemployment 
(b) Cyclical 
unemployment 

Unemployment arising from a difficulty in matching unemployed workers with available jobs 

Unemployment occurring in the downswing of an economy in between two booms 

Unemployment arising from a long-term decline in a particular industry 
ANSWER 
The pairings are (a) C, (b) B and (c) A. 
 
 
7
The objective of economic growth 
7.1 Economic growth
Economic growth 
may be measured by increases in the 
real 
gross national product (GNP) per head of 
the population.
It is not unusual to find economic growth measured simply as increases in total GNP, regardless of 
inflation and changes in population size. Over periods in which the population changes relatively little, 
this approach will be satisfactory. 
Economic growth may be 

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