#AP Italian Exam Study Guide: Last-Minute Review

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#1. Economic Challenges in Italy: Mercato del Lavoro

#Key Issues

• High Public Debt: Italy's debt is over 160% of its GDP. 📉 *

* **Slow Economic Growth:** Compared to other EU countries, Italy's growth has been sluggish. 🐌 * This makes it harder to reduce debt and boost competitiveness. * **Youth Unemployment:** Over 30% of young Italians (15-24) are unemployed. 😟 * This is a critical social and economic challenge. * **Aging Population:** A rapidly aging population puts pressure on pensions and the workforce. 👵👴 * Fewer young workers supporting more retirees. * **Lack of Structural Reforms:** Italy needs more reforms to boost the economy and competitiveness. 🛠️ * * **High Non-Performing Loans:** Banks struggle with bad loans, hindering lending and growth. 🏦 * This reduces the availability of credit for businesses.

*Image courtesy of DTM*

Practice Question

Multiple Choice Questions

1. Which of the following is a significant factor contributing to Italy's economic challenges? a) Low public debt b) Rapid economic growth c) High youth unemployment d) A young population

2. What is a consequence of Italy's high level of non-performing loans? a) Increased lending to businesses b) Hindered economic growth c) Reduced public debt d) Increased youth employment

Free Response Question

Discuss the interconnectedness of at least three factors contributing to Italy's economic difficulties. Explain how these factors affect each other and the overall economic stability of the country. (6 points)

• Point 1: Identify and explain the first e...