The table gives the unemployment rates and real GDP growth figures for an economy in year 1 and year 2. Which mix of policy measures would be most effective in bringing the economy back to the year 1 level of activity?
- Aa decrease in direct taxes and an increase in the rate of interest
- Ba decrease in government expenditure and an increase in the rate of interest
- Can increase in direct taxes and a decrease in the rate of interest
- Dan increase in government expenditure and a decrease in the rate of interest