A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2025 · Q181 Mark

A government reduces the benefits that it pays to unemployed workers to increase the incentive to work. Which types of macroeconomic policies are being used?

Afiscal policy: yes, monetary policy: no, supply-side policy: no

Bfiscal policy: yes, monetary policy: no, supply-side policy: yes

Cfiscal policy: no, monetary policy: yes, supply-side policy: yes

Dfiscal policy: no, monetary policy: no, supply-side policy: yes

✓ Correct answer

C: fiscal policy: no, monetary policy: yes, supply-side policy: yes

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 18.

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A government reduces the benefits that it pays to unemployed workers to increase the incentive to work. Which types of macroeconomic policies are being used?

✓ Correct answer

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