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

Supply-side policy — practice question

The main objective of a government is to cut the natural rate of unemployment (NAIRU). Which policy would be most likely to help achieve this objective?

  • Aan increase in interest rates
  • Ban increase in rates of unemployment benefit
  • Cthe introduction of minimum wage rates
  • Dthe introduction of subsidised travel for unemployed workers to search for jobs

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI