Suppose in Country X, the natural rate of unemployment has been increased from 5% to 8% over the past decade.

ai. Explain TWO causes of such a change over this decade-long period.

aii. During the past decade, Country X started developing her service sector and tourism. Skills required for the thriving industries have changed. Explain which cause in (a)(i) is this associated with. (8 marks)

b. During this period, the average duration of unemployment also increased. Briefly explain this change in associate with the two causes in your answers in (a)(i).