The government reduces direct taxes on business profits. What is the intended supply side effect?
Lower consumer confidence
Higher government spending automatically
A fall in the return from investment
A stronger incentive for firms to invest and expand productive capacity
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.