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2.3 How the government manages the economy

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Question 56

The government cuts income tax while other influences remain unchanged. Which effect is most likely in the short run?

[1]

A

Disposable income and consumer spending decrease

B

Disposable income and consumer spending increase

C

Disposable income decreases and consumer spending increases

D

Disposable income increases and consumer spending decreases

Markscheme

2.3 How the government manages the economy Questions

GCSE
Economics
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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