Which one of the following combinations of economic events is most likely, other things remaining equal, to reduce both demand-pull and cost-push inflationary pressures in an economy?
An appreciation of the exchange rate, combined with a reduction in the rate of employers’ national insurance contributions
A substantial rise in global energy prices, alongside a tightening of monetary policy through higher interest rates
An increase in the standard rate of Value Added Tax (VAT), alongside a reduction in state welfare benefits
A depreciation of the domestic currency's exchange rate, combined with an increase in the government's budget surplus
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.