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Economics (AS & A Level) · May / June 2024 · Paper 11 · Question 22

9708Fiscal policy

What is most likely to decrease if a government uses expansionary fiscal policy?

  1. Aa balance of payments deficit
  2. Bcyclical unemployment
  3. Cthe level of wages
  4. Dthe rate of inflation

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Correct answer: B. cyclical unemployment

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