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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2025 · Q221 Mark

Which combination of fiscal policy measures will reduce both the inflation rate and income inequality? direct taxes indirect taxes subsidies on food and public transport

Adecrease decrease increase
Bdecrease increase increase
Cincrease decrease increase
Dincrease increase decrease

✓ Correct answer

C: increase decrease increase

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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 2025 Paper 1 Variant 2, question 22.

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