Answer these 3 questions.Only 3,4 and 5.Do not need to do 1 and 2.Put missing words and write something else also draw diagram AD and AS with LRAS and SRAS

Rest of the World inuences on Unemployment Explain using an AD&AS diagram how the following could affect UK unemployment. 1. World economic growth 2. World recession 3. Rising commodity prices e. g. Oil 4. Falling commodity prices e.g. Oil 5. Foreign competition 3. Rising commodity prices e.g. oil will lead to higher c for rms. Consequently the curve will shift to the . This results in a in the Price level (P1 to P2) causing a c of AD. Consequently real output (Y c to Y1). Diagram \f5. Greater foreign competition e,g, from China will lead to higher and lower for the UK. Diagram Greater foreign competition could also lead to a decline in the UKs manufacturing base (deindustrialisation) as seen in recent decades. Consequently some of the unemployed may no longer have the correct for the jobs available and are thus unemployed. A rise in unemployment can shift the curve to the left