Economic advisers are comparing four proposals for changing policy in an economy.
Which proposal changes both of the main levers of monetary policy?
Cut corporation tax and reduce restrictions on market entry
Raise the base rate and reduce the amount of money circulating
Raise the base rate and cut spending on welfare benefits
Increase the amount of money circulating and raise an indirect tax on goods
104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.