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Economics (AS & A Level) · Feb / March 2023 · Paper 32 · Question 23

9708Fiscal policy

A government adopts an expansionary fiscal policy to increase the economic growth rate. Which other main macroeconomic aims is this policy most likely to help?

  1. Afull employment ✓, stable price level ✓, current account surplus ✗
  2. Bfull employment ✗, stable price level ✓, current account surplus ✓
  3. Cfull employment ✗, stable price level ✗, current account surplus ✓
  4. Dfull employment ✓, stable price level ✗, current account surplus ✗

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Correct answer: D. full employment ✓, stable price level ✗, current account surplus ✗

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