A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2024 · Q211 Mark
An economy has an unemployment rate of 8%, an increase of 2% from the previous year. At the same time, the current account deficit rose from 3% of GDP to 4% of GDP. What would be most likely to reduce both unemployment and the current account deficit?
Adecrease government spending
Bdepreciation of the currency
Cincrease indirect taxation
Dincrease interest rates
✓ Correct answer
B: depreciation of the currency
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