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2.5 Fiscal policy and supply-side policies

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Question 22

When an economy is operating at its full capacity level of output, a primary advantage of successful supply-side policies is that they

A

immediately reduce inequality across all regions.

B

restrict the growth of the monetary base to target inflation.

C

automatically reduce the government's budget deficit.

D

enable an expansion of real output without causing inflationary pressures.

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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