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3.7 Supply side policies

3.7 Supply side policies

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Question 8

A supply side policy increases productive capacity, but total demand does not rise. What is most likely in the short run?

[1]
A

All additional capacity is necessarily used

B

Inflation must rise sharply

C

The balance of payments must move into deficit

D

Actual output may rise by less than productive capacity

Markscheme

3.7 Supply side policies Questions

  1. GCSE
  2. /Economics
  3. /3.7 Supply side policies

29 exam-style questions on OCR GCSE Economics 3.7 Supply side policies, covering 3.7.1 What are supply side policies and 3.7.2 Costs and benefits of supply side policies. Each one has a worked solution and a mark scheme showing where the marks go.

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