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Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 25

9708Links between macroeconomic problems and their interrelatedness

The diagram shows the relationship between the rate of inflation and the rate of unemployment. What would cause the curve FG to shift to JK?

  1. Aa lower exchange rate
  2. Ba lower expected rate of inflation
  3. Can increase in government expenditure
  4. Da rise in the level of employment

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Correct answer: B. a lower expected rate of inflation

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