Extract C (lines 3–5 and 11–13) states: ‘Through targeted fiscal interventions, the state can redirect investment towards low-carbon industries and struggling regional economies, altering the country's geographical and sectoral configuration... Tax incentives and green subsidies are vital tools for reshaping these patterns of production and consumption’.
Explain ways in which a government can use fiscal policy to alter the sectoral and regional pattern of economic activity in a country.
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.