Neco Model Questions Vol1 2025 Economics Question 2
Practice objective / multiple choice question 2 from the 2025 Neco Model Questions Vol1 Economics examination.
In an economy with a labour force of 10 million, the natural rate of unemployment is 5 % of the labour force, of which structural unemployment accounts for 60 % of the natural rate. After a recession the actual unemployment rate rises to 9 %.\n\nThe government introduces a training programme that reduces structural unemployment by 1 percentage point and a fiscal stimulus that reduces cyclical unemployment by 0.5 percentage point.\n\n(a) What is the new overall unemployment rate?\n\n(b) What percentage of the original total unemployment (the 9 % before the policies) is now structural? Give your answer to two decimal places.
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This is Neco Model Questions Vol1 2025 Economics Question 2. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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