Economics · May / June 2023 · Paper 12 · Question 24

During a recession, many people in a city become unemployed and their incomes fall. Some people can no longer pay the rent on their houses or buy the food they need. What is the effect of the recession in the city?

1. Aabsolute poverty increases; relative poverty increases
2. Babsolute poverty increases; relative poverty unchanged
3. Cabsolute poverty unchanged; relative poverty increases
4. Dabsolute poverty unchanged; relative poverty unchanged

As printed in the paper