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2.5 Fiscal policy and supply-side policies

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Question 96

An economy is experiencing a prolonged period of below-trend economic growth. The government decides to intervene using a discretionary expansionary fiscal policy. Which of the following actions is an example of this policy?

A

A rise in government spending on unemployment benefits caused by an increase in the number of jobless workers

B

A reduction in the standard rate of Corporation Tax to encourage business investment

C

A reduction in commercial banks' reserve requirements by the central bank

D

An increase in government tax receipts resulting from fiscal drag during a period of inflation

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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