Which one of the following is most likely to reduce inflationary pressures in an economy?
A rise in the exchange rate of the currency
A reduction in the standard rate of income tax
A decrease in the level of cyclical unemployment
An increase in the government's budget deficit
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.