Economics (AS & A Level) · Oct / Nov 2022 · Paper 33 · Question 30
9708Fiscal policy
How will inflation and unemployment most likely be affected by a rise in the rate of income tax if government expenditure does not change?
- Ainflation falls, unemployment rises
- Binflation falls, unemployment falls
- Cinflation rises, unemployment rises
- Dinflation rises, unemployment falls
As printed in the paper
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Correct answer: A. inflation falls, unemployment rises
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