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Economics (AS & A Level) · May / June 2025 · Paper 31 · Question 21

9708Links between macroeconomic problems and their interrelatedness

A government increases its inflation rate target from 3% to 5%. What is a likely reason for this?

  1. Ato increase economic sustainability
  2. Bto increase saving
  3. Cto reduce a balance of payments deficit
  4. Dto reduce unemployment

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Correct answer: D. to reduce unemployment

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