(a)[5]
Explain what is meant by labour productivity and whether the information proves that countries with higher labour productivity are always more competitive than countries with lower labour productivity.
(b)
- State three broad macroeconomic aims that a government may pursue. [3]
- Is there evidence in the information that indicates Germany is meeting any of these macroeconomic aims? [4]
(c)[8]
Discuss the likely effects on the Spanish and Greek economies of these policy changes, which the article says come from the introduction of a single euro currency.