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Economics (AS & A Level) · Oct / Nov 2022 · Paper 13 · Question 28

9708Price stability

Which change in economic circumstances is most likely to lead to a reduction in the rate of domestic inflation in an economy?

  1. Aa depreciation in the currency
  2. Ba reduction in the productivity of labour
  3. Ca worldwide recession
  4. Dan increase in direct taxes to finance increased welfare payments

As printed in the paper

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Correct answer: C. a worldwide recession

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