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2.5 Fiscal policy and supply-side policies

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Question 34

Which one of the following fiscal policy changes would be most likely to increase aggregate demand?

A

Increasing universal child benefit payments and leaving all tax rates unchanged

B

Increasing fuel duties and reducing corporation tax to maintain a balanced budget

C

Reducing public sector pay and leaving income tax thresholds unchanged

D

Reducing government capital expenditure and increasing direct taxation by equal amounts

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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