An economy is experiencing high demand-pull inflation alongside a persistent fiscal deficit. Which of the following fiscal policy measures is most likely to reduce both of these problems?
A reduction in the standard rate of corporation tax
An increase in the personal income tax-free allowance
An increase in government capital expenditure on transport infrastructure
An increase in employee National Insurance contribution rates
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.