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2.5 Fiscal policy and supply-side policies

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Question 15

In which one of the following situations is a government most likely to pursue a contractionary fiscal policy?

A

When there is a rapid increase in cyclical unemployment

B

When the economy is suffering from a deep demand-deficient recession

C

When actual GDP is growing much faster than trend GDP, creating a positive output gap

D

When there is a permanent structural decline in the nation's manufacturing sector

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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