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

Price stability and inflation — practice question

Governments can use a variety of policy measures to cut unemployment. Which statement is correct?

  • AA government cannot reduce seasonal unemployment.
  • BChanging interest rates is the best way a government can reduce the natural rate of unemployment.
  • CChanging the exchange rate will not reduce demand-deficient unemployment.
  • DSupply-side policies can be used by a government to reduce frictional unemployment.

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