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2.3 Economic performance

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Question 41

An economy is experiencing a substantial and persistent current account deficit on its balance of payments alongside high cyclical unemployment.

Which combination of policies is most likely to enable the government to reduce cyclical unemployment while simultaneously correcting its current account deficit?

A

Expenditure-reducing policies combined with a currency appreciation

B

Expenditure-increasing policies combined with expenditure-switching policies

C

Expenditure-reducing policies combined with expenditure-switching policies

D

Expenditure-increasing policies combined with a currency appreciation

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

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.

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