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2.5 Fiscal policy and supply-side policies

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Question 70

A government wanting to reduce demand-pull inflation in the short run, through the use of fiscal policy, is most likely to

A

increase interest rates to discourage consumer spending.

B

increase the standard rate of value added tax (VAT).

C

increase its overall budget deficit.

D

reduce rates of income tax to incentivize work.

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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