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Economics · May / June 2017 · Paper 12 · Question 19

2281Employment and unemployment

Which policy combination will be the most effective if a government wishes to increase the level of employment?

  1. Adecrease general taxation and decrease the rate of interest
  2. Bdecrease general taxation and increase the rate of interest
  3. Cincrease general taxation and decrease the rate of interest
  4. Dincrease general taxation and increase the rate of interest

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Correct answer: A. decrease general taxation and decrease the rate of interest

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