Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Which mix of fiscal policy and monetary policy could be used to lower both unemployment and the government budget deficit in an economy?

  • Afiscal policy: contractionary; monetary policy: expansionary
  • Bfiscal policy: contractionary; monetary policy: unchanged
  • Cfiscal policy: expansionary; monetary policy: contractionary
  • Dfiscal policy: unchanged; monetary policy: contractionary

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