Skip to content

Course home

Sign up

2.5 Fiscal policy and supply-side policies

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354
Question 12

An economy is experiencing high inflation and a large budget deficit. The government wishes to implement a policy package consisting only of discretionary contractionary fiscal policy measures. Which of the following combinations meets this criterion?

A

A program of quantitative tightening (selling government bonds) and an increase in the main rate of corporation tax

B

A rise in the standard rate of Value Added Tax (VAT) and a reduction in public sector infrastructure investment

C

An increase in the central bank's base interest rate and a real-terms freeze on public sector wages

D

A reduction in employee national insurance contributions and a decrease in state pension expenditure

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.

Question bank