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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2014 · Q181 Mark

Which pair of government actions combines a fiscal policy with a supply-side policy?

Achanging government spending with changing interest rates
Bcutting tax rates with providing information on job vacancies
Climiting bank lending with the privatisation of industry
Drestricting credit with less control over labour markets

✓ Correct answer

B: cutting tax rates with providing information on job vacancies

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2014 Paper 1 Variant 2, question 18.

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