Which one of the following policy measures is most likely to reduce a deflationary (negative) output gap in a domestic economy?
An increase in
value-added tax (VAT)
government contributions to international peacekeeping forces
government investment in national digital infrastructure
the base interest rate by the central bank
22 exam-style questions on Edexcel A A Level Economics 2.6.2 Demand-side policies. Each one has a worked solution and a mark scheme showing where the marks go.