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2.3 How the government manages the economy

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Question 48

Several factories in one region have closed and unemployment there has risen. Four measures are proposed to increase employment in the region.

Which measure is an example of fiscal policy?

[1]
A

Raise government spending on hiring extra NHS staff in the region

B

Reform trade union laws so that firms can take on staff more easily

C

Cut the base rate so that local firms can borrow more cheaply

D

Remove rules that restrict new firms from entering local markets

Markscheme

2.3 How the government manages the economy Questions

  1. GCSE
  2. /Economics
  3. /2.3 How the government manages the economy

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.

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