Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

Which alteration in the labour market could result in inflation if the government introduced an expansionary fiscal policy?

  • Aa decrease in the economy’s national minimum wage
  • Ba decrease in the power of the economy’s trade unions
  • Can increase in the level of benefits paid to unemployed workers
  • Dan increase in the migration of workers into the country from overseas

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