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

Price stability and inflation — practice question

In 2016, Greece’s unemployment rate was above 20%. Which set of policies would be most suitable for the Greek government to use in order to reduce unemployment?

  • Amonetary policy: decrease interest rates; government expenditure: increase; profit tax: decrease
  • Bmonetary policy: decrease interest rates; government expenditure: decrease; profit tax: increase
  • Cmonetary policy: increase interest rates; government expenditure: increase; profit tax: increase
  • Dmonetary policy: increase interest rates; government expenditure: decrease; profit tax: decrease

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