A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2019 · Q301 Mark
The diagram shows the AD/AS curves for an economy. Which policy would reduce the price level from P₁ to P2 as shown?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Adepreciating the currency to make imports more expensive
Bimposing tariffs on imports to encourage expenditure switching
Cincreasing labour productivity through training
Draising sales taxes on goods to discourage consumption
✓ Correct answer
C: increasing labour productivity through training
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