An economy is experiencing a high rate of inflation alongside a high level of structural unemployment. Which one of the following policy measures is most likely to reduce both the rate of inflation and the level of unemployment in the long run?
A depreciation of the domestic currency's exchange rate
A reduction in the central bank's base interest rate
An increase in government funding for national retraining and apprenticeship schemes
An increase in the statutory minimum wage 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.