It can reduce business revenues, potentially leading to lower wages or job cuts

It causes an immediate shift of the Aggregate Supply curve to the right

It automatically increases the purchasing power of all wages

It leads to a mandatory increase in income taxes

The demand for labour shifts left because firms cannot sell enough output

Government legislation prevents firms from hiring more than a certain number of workers

Workers collectively decide to stop working to protest low wages

The supply of labour increases because people need more money

Direct loans made by the World Bank to developing nations

New currencies created to replace the US dollar

Financial instruments created by repackaging mortgage and consumer debts

Government bonds used to fund social programs

They provide a buffer that prevents external shocks from affecting the economy

They cause an immediate shift from a trade deficit to a trade surplus

They weaken institutional resilience, making the state more vulnerable to external shocks

They ensure that government revenue remains stable regardless of trade disruptions