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2.5 Fiscal policy and supply-side policies

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Question 71

Which one of the following policies is most likely to cause an increase in real GDP and employment without generating inflationary pressure?

A

An increase in government spending on welfare benefits

B

A reduction in the base interest rate by the central bank

C

Government measures to improve labor market flexibility

D

A deliberate devaluation of the domestic currency

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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