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Economics · Oct / Nov 2020 · Paper 13 · Question 16

2281Government macroeconomic intervention

What are two aims that a government normally pursues when managing the performance of the whole economy?

  1. Ato encourage an increase in production and to prevent high inflation
  2. Bto ensure no one is unemployed and to reduce exports
  3. Cto give everyone equal incomes and to increase government revenue
  4. Dto protect the environment and to reduce interest rates

As printed in the paper

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Correct answer: A. to encourage an increase in production and to prevent high inflation

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