Which one of the following combinations of macroeconomic policy instruments involves only the use of fiscal policy measures?
An increase in government spending on infrastructure and a reduction in income tax rates
A reduction in the central bank discount rate and an increase in welfare benefits
An increase in the main policy interest rate and a cut in corporate tax rates
An expansion of quantitative easing and a reduction in value added tax (VAT)
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.