Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP. What might policymakers do in the face of these economic indicators?
Answer
A
try to trade with other nations to increase production and create new jobs
B
implement controls on wages, forcing employers to pay higher wages
C
encourage a decrease in purchasing until employment figures increase
D
increase taxes so the government has more money to spend