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2.5 Fiscal policy and supply-side policies

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Question 17

Which of the following is an interventionist supply-side policy designed to reduce the natural rate of unemployment by targeting structural unemployment?

A

Deregulating regional planning laws to encourage housing construction and improve geographical mobility of labor

B

Establishing government-funded vocational retraining academies in regions experiencing industrial decline

C

Reducing the standard rate of income tax to increase the incentive for inactive individuals to enter the workforce

D

Lowering the national minimum wage to reduce real-wage classical unemployment

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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