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Economics (AS & A Level) · May / June 2021 · Paper 32 · Question 28

9708Unemployment

Unemployment in an economy increases. What is a probable consequence?

  1. Aa switch from direct to indirect taxation
  2. Ban increase in demand-pull inflation
  3. Can increase in the balance of trade deficit
  4. Dan increase in the government budget deficit

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Correct answer: D. an increase in the government budget deficit

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