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Supply side policy

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Question 16

An economy is currently operating at full capacity on its production possibility frontier (PPF). Which of the following is most likely to enable the economy to achieve a sustained increase in its maximum potential output?

A

An increase in government funding for national worker training programmes

B

A reduction in income tax rates to stimulate domestic consumer demand

C

A reallocation of existing resources from agricultural production to manufacturing

D

An expansion of the money supply by the central bank

Markscheme

Supply side policy Questions

  1. A Level
  2. /Economics
  3. /Supply side policy

37 exam-style questions on OCR A Level Economics Supply side policy. Each one has a worked solution and a mark scheme showing where the marks go.

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