An economy is experiencing high demand-pull inflation alongside rising structural unemployment caused by an occupational skills mismatch. All other things being equal, which combination of policies is most likely to mitigate both of these macroeconomic problems simultaneously?
A reduction in the central bank's policy interest rate combined with increased government funding for apprenticeships and vocational training.
A reduction in corporation tax rates combined with an expansion of the government budget deficit.
An increase in the central bank's policy interest rate combined with increased government investment in regional retraining and adult education programs.
A reduction in the rate of personal income tax combined with a reduction in the national minimum wage.
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.