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Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 29

9708Fiscal policy

Which policy is most likely to conflict with a government's aim of price stability in the short run?

  1. Aincreasing spending on education and health
  2. Bincreasing the basic rate of income tax
  3. Climiting wage increases in the public sector
  4. Dpreventing mergers of large companies

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Correct answer: A. increasing spending on education and health

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