The consequences of unemployment for individuals and for the performance of the economy
Unemployment harms individuals by cutting their income and damaging their skills. It also weakens the whole economy by reducing output, tax revenue, and long-run productive capacity.
Real World
During the 2008–09 financial crisis, UK unemployment rose to 2.5 million; many redundant construction workers saw their skills become outdated within months, making re-employment harder even when the economy recovered.
Exam Focus
Separate individual costs from macroeconomic costs in two distinct paragraphs — examiners reward structured analysis over merged lists.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?