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2.6 Macroeconomic objectives and policies

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Question 7

Which of the following correctly pairs a market-based supply-side policy with an interventionist supply-side policy, both of which are aimed at shifting the Long-Run Aggregate Supply (LRASLRASLRAS) curve to the right?

Market-based: A reduction in the maximum duration of unemployment benefits; Interventionist: Direct government funding for regional science and technology parks

Market-based: A reduction in the rate of corporation tax; Interventionist: An increase in state welfare benefits to boost consumer expenditure

Market-based: A reduction in the central bank's main policy interest rate; Interventionist: State funding for apprenticeship schemes in manufacturing

Market-based: Stricter environmental regulations on carbon emissions; Interventionist: Deregulation of commercial land-use planning laws

2.6 Macroeconomic objectives and policies Questions

  1. A Level
  2. /Economics
  3. /2.6 Macroeconomic objectives and policies