Specification point 2.6.1 · Theme 2

Possible macroeconomic objectives

Macroeconomic objectives and policies · The UK economy – performance and policies

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ContextThe UK’s labour force inactivity rate was 20.2% in January 2020 and increased to 21.5% in January 2022. After an increase in the early stages of the global health crisis, most developed countries have recorded a decrease in the inactivity rate back to, and below, levels in 2019. This is not the case in the UK.

Which one of the following would be the most likely result of an increase in the rate of employment?

ADeflation
BImprovement in living standards
CIncrease in absolute poverty
DRecession
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