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2.5 Fiscal policy and supply-side policies

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Question 125

Which one of the following is an example of a discretionary expansionary fiscal policy?

A

An increase in government expenditure on unemployment benefits due to a rise in national unemployment

B

A reduction in the main corporation tax rate designed to stimulate business investment

C

A reduction in the central bank's base interest rate to encourage borrowing

D

An increase in tax revenues resulting from higher rates of economic growth

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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