Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

In the diagram, curve X1 represents an economy’s original trade-off between inflation and unemployment. What might make the curve move to X2?

  • Aan increase in the natural rate of unemployment
  • Ba decrease in the money supply
  • Cthe expectation of a decrease in the inflation rate
  • Dan increase in the rate of interest

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI