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2.5 Fiscal policy and supply-side policies

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Question 75

Which of the following statements correctly distinguishes between market-based and interventionist supply-side policies?

A

Market-based policies aim to increase productivity by increasing labor market regulation, whereas interventionist policies rely on deregulation to foster competition.

B

Market-based policies utilize tax cuts and welfare reform to increase incentives to work and invest, whereas interventionist policies involve targeted government funding to improve infrastructure and education.

C

Market-based policies are designed to manage short-run aggregate demand via government capital spending, whereas interventionist policies focus purely on shifting the long-run aggregate supply curve.

D

Market-based policies aim to reduce structural unemployment by nationalizing key public utilities, whereas interventionist policies use privatization to increase economic efficiency.

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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