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Economics (AS & A Level) · Oct / Nov 2021 · Paper 33 · Question 21

9708Unemployment

What would increase structural unemployment in the manufacturing sector of the US?

  1. AAsian exporters of manufactured goods to the US experience a fall in labour costs per unit of output.
  2. BTariffs on Asian manufacturing imports increase.
  3. CThe percentage of US manufacturing employees belonging to a trade union falls.
  4. DThe US dollar's real effective exchange rate against the Asian currencies falls.

As printed in the paper

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Correct answer: A. Asian exporters of manufactured goods to the US experience a fall in labour costs per unit of output.

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