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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2015 · Q171 Mark

In recent years, governments have had to manage the effects of a world recession. Which supply-side policy could have been used to stimulate economic growth?

Aincreases in income tax
Binvestment in skills training schemes
Cpayments of unemployment benefits
Dreduction in interest rates

✓ Correct answer

B: investment in skills training schemes

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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 2015 Paper 1 Variant 2, question 17.

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