Economics 9708 · AS & A Level · Supply-side policy

Supply-side policy — practice question

The diagram illustrates the link between the rate of increase in wages and the rate of unemployment. What is likely to make the curve in the diagram move downwards and to the left?

  • Aa reduction in regional differences in unemployment rates
  • Ban increase in the proportion of the workforce belonging to trade unions
  • Can increase in the unemployment rate
  • Dthe expectation of a higher rate of inflation

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