Economics 9708 · AS & A Level · Labour market

Labour market — practice question

An economy records an unemployment rate of 8%, which is 2% higher than in the previous year. At the same time, the current account deficit increased from 3% of GDP to 4% of GDP. What would be most likely to lower both unemployment and the current account deficit?

  • Adecrease government spending
  • Bdepreciation of the currency
  • Cincrease indirect taxation
  • Dincrease interest rates

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