An economy is experiencing high demand-pull inflation and a growing government budget deficit. All other things being equal, which policy is most likely to reduce both inflation and the budget deficit?
A reduction in the central bank's policy interest rate
An increase in the rates of personal income tax
An expansion of government infrastructure investment
A depreciation of the domestic currency's exchange rate
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.