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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2020 · Q291 Mark

What is an example of fiscal policy aimed at increasing aggregate demand in an economy?

Aincreasing expenditure by firms on skills training programmes for unskilled workers
Bincreasing the commercial banks’ lending ability
Creducing the rate of income tax for all income earners
Dreducing the rate of interest on loans to manufacturing companies

✓ Correct answer

C: reducing the rate of income tax for all income earners

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2020 Paper 1 Variant 2, question 29.

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