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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2011 · Q291 Mark

During 2009 some governments adopted policies to try to end the recession in their country and increase economic growth. Which combination of policies is most likely to achieve this?

Alower taxes and decrease government spending
Blower taxes and increase government spending
Craise taxes and decrease government spending
Draise taxes and increase government spending

✓ Correct answer

B: lower taxes and increase government spending

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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 2011 Paper 1 Variant 1, question 29.

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