Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

What is one possible pairing of a cost and a benefit linked to increasing unemployment levels?

  • Acost: a deterioration in human capital; benefit: an increase in capital expenditure
  • Bcost: an increase in import expenditure; benefit: a decrease in government tax revenue
  • Ccost: an increase in the rate of economic growth; benefit: a more responsive workforce
  • Dcost: an irretrievable loss of output; benefit: a reduction in inflationary pressure

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