Which of the following describes the operation of an automatic stabiliser during an economic recession?
An automatic increase in government expenditure on unemployment-related welfare benefits
A discretionary temporary reduction in the standard rate of Value Added Tax (VAT)
A decision by the central bank to lower the base interest rate to stimulate borrowing
A government initiative to launch a new high-speed rail infrastructure project to boost employment
68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.