In the aftermath of major global economic crises, many governments face the dual challenge of elevated national debt and persistent unemployment. While proponents of fiscal consolidation argue that reducing the budget deficit is vital for securing long-term macroeconomic stability and market confidence, critics suggest that premature austerity can derail economic recovery and severely harm employment prospects.
Evaluate the view that a government should prioritize reducing its budget deficit over achieving low unemployment.
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.