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A-LevelEconomicsMacroeconomic PolicyOct/Nov 2017Paper 3 Q281 Mark

The government cuts taxes and increases its spending in order to create jobs during a recession. When will a resulting budget deficit be least likely to cause a permanent reduction in unemployment? A when households expect higher inflation rates in the future B when households spend their extra disposable incomes on domestic products C when the government's extra spending is on new infra-structure projects D when the government's extra spending is on the salaries of public sector workers

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2017 examination, Paper 3 Variant 2. It tests the topic of Macroeconomic Policy and is worth 1 mark.

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