A-LevelEconomicsThe macroeconomy9708/12 · May/June 2023 · Q291 Mark

Supply-side policies can be used to correct cost-push inflation. Which policy would best achieve this aim in the long run?

Aallowing trade unions to maintain work practices irrespective of productivity

Bencouraging workers to work extra hours for extra pay

Cincreasing total labour supply by employing more unskilled workers

Dsupporting the replacement of labour-manned machines by the use of robots

✓ Correct answer

D: supporting the replacement of labour-manned machines by the use of robots

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2023 Paper 1 Variant 2, question 29.

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