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2.5 Fiscal policy and supply-side policies

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Question 110

Which one of the following policy measures is most likely to be classified as a supply-side policy?

A

A reduction in the central bank's policy interest rate to lower borrowing costs for households

B

A temporary cut in the standard rate of value-added tax (VAT) to stimulate retail sales during an economic downturn

C

The introduction of government-funded apprenticeships and vocational training programs to improve labour productivity

D

An increase in state transfer payments to low-income households to mitigate the impact of rising living costs

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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