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Question 23M.1.HL.TZ1.a

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Date May 2023 Marks available [Maximum mark: 10] Reference code 23M.1.HL.TZ1.a
Level HL Paper 1 Time zone TZ1
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
23M.1.HL.TZ1.a

Explain the natural rate of unemployment.

[10]

Markscheme

Refer to Paper 1 markbands for May 2022 forward, available under the "My tests" tab > supplemental materials.

Answers may include:

  • Terminology: the natural rate of unemployment (NRU).
  • Explanation: of the NRU as a result of structural, frictional and seasonal unemployment and an explanation of each of these.
  • Diagram: showing a decrease in the demand for labour for a particular market or geographical area for structural unemployment; or a business cycle diagram (or AD/AS diagram) showing actual GDP being equal to potential GDP at the NRU, or use of a long-run Phillips curve diagram, or a labour market diagram with the wage above the equilibrium.

Assessment Criteria

Part (a) 10 marks

Examiners report

The best responses explained each of the three types of unemployment that comprise natural unemployment while also relating natural unemployment to the full employment level of output. Unfortunately, many candidates focused their explanations on either the types of unemployment that comprise natural unemployment or on the link between natural unemployment and the business cycle. The weakest answers confused cyclical and natural unemployment.

Syllabus sections