Which one of the following policy measures is most likely to be classified as a market-based supply-side policy?
An increase in government capital expenditure on national transport infrastructure.
A reduction in the duration of unemployment benefit entitlements to encourage active job seeking.
A temporary reduction in the standard rate of value-added tax (VAT) to stimulate retail sales.
A purchase of government bonds by the central bank to lower long-term interest rates.
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.