Question: Classify the following into either stabilisation or structural economic policies. a. The central bank reacts to a rise in inflation by increasing interest rates. b.

Classify the following into either stabilisation or structural economic policies. a. The central bank reacts to a rise in inflation by increasing interest rates. b. The finance minister responds to a rise in unemployment by cutting the rate of income taxc. In an attempt to increase productivity the government announces new tax incentives to promote research and development. d. The EU negotiates a new free trade deal with China. e. The government deficit increases as the economy moves into recession

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