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

Supply-side policy — practice question

An economy is affected by cost-push inflation. Which mix of policies would be most suitable for the economy to use to reduce cost-push inflation?

  • Aexchange rate: appreciate; supply-side policy: lower minimum wage
  • Bexchange rate: appreciate; supply-side policy: raise minimum wage
  • Cexchange rate: depreciate; supply-side policy: lower minimum wage
  • Dexchange rate: depreciate; supply-side policy: raise minimum wage

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