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2.6.2 Demand-side policies

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Question 1

Which one of the following policies is most likely to reduce the level of cyclical unemployment in an economy?

A

An increase in the rate of Value Added Tax (VAT)

B

A decrease in the central bank's main policy interest rate

C

A reduction in state spending on national infrastructure projects

D

An increase in the required reserve ratio for commercial banks

Markscheme

2.6.2 Demand-side policies Questions

  1. A Level
  2. /Economics
  3. /2.6.2 Demand-side policies

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.

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