An economy is experiencing sluggish productivity growth alongside rising cyclical unemployment. All other things being equal, which combination of policy measures is most likely to both stimulate the rate of growth of productivity and reduce cyclical unemployment?
An increase in corporate tax rates and a tightening of monetary policy
Increased government subsidies for business research and development (R&D) and a reduction in the central bank's policy interest rate
A decrease in public capital expenditure and an increase in personal income tax rates
Raising national insurance contributions and an appreciation of the domestic 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.