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Economic policy objectives

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Question 42

The diagram below shows the relationship between inflation and unemployment in an economy.

Phillips Curve

Which of the following is the most likely cause of a movement from point P P\,P to point Q Q\,Q along the short-run Phillips curve?

An increase in direct taxation on households

An increase in government spending on national infrastructure

An increase in the natural rate of unemployment

A decrease in the inflationary expectations of workers and firms

Economic policy objectives Questions

  1. A Level
  2. /Economics
  3. /Economic policy objectives