An economy is experiencing a high rate of unemployment alongside a large balance of payments surplus on its current account. Which one of the following policy measures is most likely to reduce both the level of unemployment and the current account surplus?
An increase in domestic interest rates
An increase in government infrastructure investment
A decrease in the national minimum wage
A depreciation of the exchange rate
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.