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Economics (AS & A Level) · Oct / Nov 2022 · Paper 33 · Question 29

9708Fiscal policy

A government decides to increase direct taxation. Which combination would describe the impact of this policy on unemployment, growth and balance of payments?

  1. Aimproves / improves / improves
  2. Bimproves / improves / worsens
  3. Cworsens / worsens / improves
  4. Dworsens / worsens / worsens

As printed in the paper

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Correct answer: C. worsens / worsens / improves

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