Which one of the following fiscal policy packages is most likely to cause a reduction in aggregate demand?
An increase in the main rate of corporation tax accompanied by a reduction in public sector capital investment
A reduction in the standard rate of income tax accompanied by an equivalent cut in government administrative costs
An increase in national insurance contributions balanced by an equal expansion in public sector infrastructure spending
A reduction in the rate of value-added tax (VAT) while keeping total government spending unchanged
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.