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2.5 Fiscal policy and supply-side policies

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Question 55

In response to a projected decline in aggregate demand and rising unemployment, the Japanese government announced a major economic stimulus package. This package included substantial state funding for regional transport infrastructure, renewable energy grids, and digital communication networks.

This policy measure is best classified as an example of:

A

contractionary fiscal policy.

B

expansionary fiscal policy.

C

expansionary monetary policy.

D

contractionary supply-side policy.

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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