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Economics · Oct / Nov 2018 · Paper 12 · Question 16

2281Supply-side policy

A government aims to reduce unemployment through a supply-side policy measure. Which measure would it use?

  1. AIt would increase government spending.
  2. BIt would increase tariffs on imported goods and services.
  3. CIt would introduce retraining schemes.
  4. DIt would reduce the rate of interest.

As printed in the paper

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Correct answer: C. It would introduce retraining schemes.

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