Gce Model Questions Vol1 2023 Economics Question 10

Practice essay / theory question 10 from the 2023 Gce Model Questions Vol1 Economics examination. This question covers Unemployment, Labour Market, Macroeconomic Policy, Okun's Law .

Gce Model Questions Vol1 2023 Economics Essay / Theory
Topics: Unemployment Labour Market Macroeconomic Policy Okun's Law
Question 10 GCE_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • essay

Recent labour market statistics show that Nigeria's overall unemployment rate has risen to 23 % and youth unemployment (aged 15‑34) stands at 38 %. At the same time, the economy has been growing at an average real GDP growth rate of 2.5 % per annum. Answer the following questions:

Question Parts

( a )
Define and differentiate between frictional, structural and cyclical unemployment. Give one example of each type that is relevant to the Nigerian context.
( b )
Okun’s law states that for every 1 % fall in real GDP, the unemployment rate rises by approximately 0.5 %. Using this relationship, estimate the change in the unemployment rate that would result from a 2 % contraction in real GDP. Discuss two limitations of applying Okun’s law directly to the Nigerian economy.
( c )
Propose two labour‑market policies that could reduce structural unemployment in Nigeria. For each policy, explain how it would operate and evaluate one potential advantage and one possible drawback.

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About This Question

This is Gce Model Questions Vol1 2023 Economics Question 10. It is one of the essay questions from the 2023 Gce Model Questions Vol1 Economics examination.

The question covers Unemployment, Labour Market, Macroeconomic Policy, Okun's Law .

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