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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2017 · Q191 Mark

Which policy combination will be the most effective if a government wishes to increase the level of employment?

Adecrease general taxation and decrease the rate of interest
Bdecrease general taxation and increase the rate of interest
Cincrease general taxation and decrease the rate of interest
Dincrease general taxation and increase the rate of interest

✓ Correct answer

A: decrease general taxation and decrease the rate of interest

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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 2017 Paper 1 Variant 2, question 19.

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