A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2024 · Q211 Mark

Which supply-side policy is likely to lower real output before raising it?

Aincreased spending on early years education

Bincreased spending on infrastructure

Creduced import barriers

Dsubsidies to exporters

✓ Correct answer

C: reduced import barriers

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2024 Paper 1 Variant 2, question 21.

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