Love the hysterisis point and always relate the costs and benefits of unemployment to the specific type of unemployment if there are any clues in the question or extract. Because then the A* students will choose policies ACCORDINGLY to whether it is cyclical or structural unemployment. If we should use demand side to boost AD or very specific supply side policies to fix problems such as de-skilled workers (hysterisis).
Possibility of less cost-push inflation (less wage inflation) and less demand-pull inflation, which reduces the chances of a wage-price spiral from occurring, which can help contribute to the government achieving their target inflation rate of 3%
Possibility that the cost of wages for governments (current spending) decrease because of consumer confidence decreasing meaning that workers would take a lower wage to guarantee employment
Thanks Dal for the amazing video as always. I have notes for AQA and Edexcel A Level Economics which I made while studying for my exams and I also used these videos a lot. I also make videos for A Level Maths so I would really appreciate a follow and would be happy to help. My notes are in my channel description!
