23Government Aims Roles Policy ConflictsHard1 mark
The table shows real GDP and consumer prices (CPI) expressed as index numbers for an economy (2020 = 100).
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| real GDP | 100 | 98 | 96 |
| CPI | 100 | 98 | 95 |
Which combination of policies will achieve economic growth and low and stable inflation?
| budget deficit | rate of interest | |
|---|---|---|
| A | decreases | decreases |
| B | decreases | increases |
| C | increases | decreases |
| D | increases | increases |