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What are the main weaknesses of using demand-side policies?
Trade-off issues
a) Growth and low unemployment often come with inflation
b) Government stimulatory policies might be come from deficit spending and thus enhanced debt
c) Growth may result in current account problems (HL; use MPM)
d) Growth and inflation, together with rising imports may lead to downward pressure on the exchange rate
Examine the factors that influence a country s exchange rate. Suppose and define a floating exchange rate, the major issue here is to outline the factors influencing the supply
meaning of economics laws
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What is contraction of supply?
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