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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