2.5 Fiscal policy and supply-side policies

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Question 1
Easy

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.

2.5 Fiscal policy and supply-side policies Questions

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