A country is experiencing high unemployment, high inflation and a trade deficit. Which policy is most likely to solve all of these problems?
A.
B.
C.
D.
Exam No:9708_s25_qp_34 Year:2025 Question No:20
Answer:
B
Knowledge points:
10.3.1.1 fiscal policy including Laffer curve analysis
10.3.1.2 monetary policy
10.3.1.3 supply-side policy including market-based and interventionist policies
10.3.1.4 exchange rate policy
10.3.1.5 international trade policy
10.3.2 problems and conflicts arising from the outcome of these policies
Solution:
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