Economics 9708 · AS & A Level · Externalities

Externalities — practice question

Which mix of fiscal, monetary and supply-side policies is most likely to lower unemployment?

  • Afiscal: increasing taxation; monetary: increasing interest rate; supply-side: increasing flexibility in the labour market
  • Bfiscal: increasing government expenditure; monetary: decreasing the money supply; supply-side: increasing education and training
  • Cfiscal: decreasing taxation; monetary: decreasing interest rate; supply-side: increasing flexibility in the labour market
  • Dfiscal: decreasing government expenditure; monetary: increasing the money supply; supply-side: increasing education and training

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