A government is planning to fund a regional digital connectivity upgrade. To achieve this, it decides to increase the supplementary corporate tax rate levied on major technology providers from 12% to 19.5%.
All other things being equal, for every 12 companies each earning taxable profits of £8 million£8\text{ million}£8 million, by how much could the government increase its spending on the digital connectivity upgrade without affecting the budget balance?
£600,000£600,000£600,000
£7,200,000£7,200,000£7,200,000
£11,520,000£11,520,000£11,520,000
£18,720,000£18,720,000£18,720,000
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.