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2.5 Fiscal policy and supply-side policies

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Question 25

Following a sustained period of investment-led supply-side reforms, an economy experiences a successful expansion of its productive capacity. All other things being equal, which combination of changes in macroeconomic indicators is the most likely outcome of these reforms?

A

Unemployment rate: Decreasing; Domestic price level: Decreasing; Net export performance: Improving

B

Unemployment rate: Increasing; Domestic price level: Increasing; Net export performance: Deteriorating

C

Unemployment rate: Decreasing; Domestic price level: Increasing; Net export performance: Improving

D

Unemployment rate: Increasing; Domestic price level: Decreasing; Net export performance: Deteriorating

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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