Economics · May / June 2022 · Paper 11 · Question 23
2281Economic growth
Why would standards of living fall when there is a recession?
- AThe government would increase taxes to combat the recession.
- BThe purchasing power of households would fall.
- CThe value of the domestic currency would increase.
- DThere would be a rise in the level of immigration.
As printed in the paper
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Correct answer: B. The purchasing power of households would fall.
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