In 2022, in response to high inflation and escalating national debt, a major objective of the UK Government was to stabilize public finances. A significant portion of this fiscal consolidation was planned to run through increases in taxation, including freezing personal income tax thresholds and increasing the main rate of corporation tax, while seeking to protect frontline public service spending.
Explain the possible demand-side consequences of an increase in taxation on households and firms in the UK.
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.