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2.5 Fiscal policy and supply-side policies

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Question 19

Which one of the following is an example of fiscal policy having a direct supply-side effect?

A

A depreciation of the exchange rate designed to make domestic exports more competitive and stimulate aggregate demand.

B

A reduction in the central bank's reserve asset requirements to encourage commercial banks to expand credit to small-and-medium enterprises.

C

A temporary holiday on stamp duty land tax to stimulate transaction volumes and consumer confidence in the housing market.

D

An expansion of government spending on regional transport infrastructure to reduce supply-chain bottlenecks and improve labor mobility.

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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