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2.3 Economic performance

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Question 75

Which one of the following developments is most likely to lead to a reduction in cyclical unemployment in the UK?

A

A tightening of fiscal policy through a reduction in government capital expenditure

B

A depreciation of the pound sterling (GBP\text{GBP}GBP) exchange rate

C

An increase in the household savings ratio across the economy

D

An increase in the base interest rate set by the Monetary Policy Committee (MPC)

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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