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Macroeconomic trade-offs

In this column, Steve Stoddard offers guidance on answering examination questions concerning macroeconomic trade-offs

Can unemployment be reduced without rising inflation? Is it inevitable that economic growth leads to a deficit on the current account of the balance of payments? Will economic growth lead to greater inequality and a wrecked environment?

Macroeconomic trade-offs feature regularly in A-level exams, whether as explicit questions or evaluative issues that can be raised as a consequence of using macroeconomic policies. Indeed, the topic of macroeconomic trade-offs features on the specifications of all the major exam boards in England and Wales.

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