Question 20
Question 20 of 30
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No letter options?
Older MCQs might not have the typical A, B, C, D choices. They have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such combinations to the answer.
A 1, 2 and 3 are correct
B 1 and 2 only are correct
C 2 and 3 only are correct
D 1 only is correct
Topics Tested
10. Government macroecono...
10.3. Effectiveness of policy optio...

effectiveness of different policies in relation to different macroeconomic objectives: fiscal policy including Laffer curve analysis, monetary policy, supply-side policy including market-based and interventionist policies, exchange rate policy, international trade policy

3. Government microeconom...
3.1. Reasons for government interve...

addressing the over-consumption of demerit goods and the under-consumption of merit goods

5. Government macroeconom...
5.3. Monetary policy

AD/AS analysis of the impact of expansionary and contractionary monetary policy on the equilibrium national income and the level of real output, the price level and employment