Economics · May / June 2025 · Paper 12 · Question 4
2281Government macroeconomic intervention
What are both macroeconomic decisions?
- Aa school recruits more teachers | a firm sets the prices for its products
- Ba central bank reduces money supply | a government spends more on defence
- Ca government increases tax rates | a farmer decides which crops to grow
- Da household cuts its energy use | a worker accepts an offer of overtime
As printed in the paper
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Correct answer: B. a central bank reduces money supply | a government spends more on defence
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