A government aims to reduce its budget deficit by introducing a carbon tax on industrial emissions and decreasing its capital expenditure on regional transport networks.
These policy changes are most likely to
increase the level of real national output in the short run\text{increase the level of real national output in the short run}increase the level of real national output in the short run
permanently alter the allocation of resources across different sectors in the long run\text{permanently alter the allocation of resources across different sectors in the long run}permanently alter the allocation of resources across different sectors in the long run
increase the volume of consumer imports in the short run\text{increase the volume of consumer imports in the short run}increase the volume of consumer imports in the short run
accelerate the rate of demand-pull inflation in the long run\text{accelerate the rate of demand-pull inflation in the long run}accelerate the rate of demand-pull inflation in the long run
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.