O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2019 · Q171 Mark
The government increases taxation in order to fund an increase in spending on government training schemes. Which policy combination would this involve?
Afiscal policy and monetary policy only
Bfiscal policy and supply-side policy only
Cmonetary policy and supply-side policy only
Dmonetary policy, supply-side policy and fiscal policy
✓ Correct answer
B: fiscal policy and supply-side policy only
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