A government plans to reduce its budget deficit by increasing taxes on single-use plastics and reducing its spending on public infrastructure.
These policy changes are most likely to
raise the rate of inflation in the long run.
increase the level of economic growth in the short run.
alter the allocation of resources in the economy in the long run.
increase the volume of imports in the short run.
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.