A government implements a policy that initially worsens the national budget balance but is designed to increase the economy's long-run productive capacity.
This policy is most likely to be
lowering the national minimum wage.
increasing capital investment in transport infrastructure.
raising the main rate of corporation tax.
depreciating the domestic currency.
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.