Economics (AS & A Level) · Oct / Nov 2024 · Paper 13 · Question 19

A government is considering building a large hospital. The impact on the country's price level will depend partly on the amount of expensive raw materials the country imports for the hospital and the level of unemployment in the country. Which combination of imports of materials for the hospital and the level of unemployment is most likely to lead to the largest rise in the price level? | | imports of materials | unemployment | |---|---|---| | A | high | high | | B | high | low | | C | low | high | | D | low | low |

1. Ahigh | high
2. Bhigh | low
3. Clow | high
4. Dlow | low

As printed in the paper