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Economics (AS & A Level) · May / June 2023 · Paper 12 · Question 29

9708Supply-side policy

Supply-side policies can be used to correct cost-push inflation. Which policy would best achieve this aim in the long run?

  1. Aallowing trade unions to maintain work practices irrespective of productivity
  2. Bencouraging workers to work extra hours for extra pay
  3. Cincreasing total labour supply by employing more unskilled workers
  4. Dsupporting the replacement of labour-manned machines by the use of robots

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Correct answer: D. supporting the replacement of labour-manned machines by the use of robots

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