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Economics · May / June 2023 · Paper 12 · Question 20

2281Supply-side policy

The government of country Z announces an increase in spending on work-place training. What is the effect of this supply-side policy likely to be?

  1. Aa decrease in country Z's employment rate
  2. Ba decrease in country Z's exchange rate
  3. Can increase in country Z's economic growth rate
  4. Dan increase in country Z's interest rate

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Correct answer: C. an increase in country Z's economic growth rate

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