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2.5 Fiscal policy and supply-side policies

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Question 1

Which one of the following policy measures is most likely to be classified as a market-based supply-side policy?

A

An increase in government capital expenditure on national transport infrastructure.

B

A reduction in the duration of unemployment benefit entitlements to encourage active job seeking.

C

A temporary reduction in the standard rate of value-added tax (VAT) to stimulate retail sales.

D

A purchase of government bonds by the central bank to lower long-term interest rates.

Markscheme

2.5 Fiscal policy and supply-side policies Questions

  1. A Level
  2. /Economics
  3. /2.5 Fiscal policy and supply-side policies

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.

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