Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 24
9708Links between macroeconomic problems and their interrelatedness
In the diagram, the curve X1 shows an economy's initial trade-off between inflation and unemployment. What does the shift of the curve from X1 to X2 show?
- Aan increase in the natural rate of unemployment
- Ba decrease in the money supply
- Cthe expectation of a decrease in the inflation rate
- Dan increase in the rate of interest
As printed in the paper
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Correct answer: A. an increase in the natural rate of unemployment
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