O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2022 · Q231 Mark
A government wants to reduce both its budget deficit and the amount of poverty in its country. Which fiscal policy measure is most likely to achieve both of these aims?
Adecreasing the rate of progressive income tax
Bdecreasing government spending on welfare benefits
Cincreasing the rate of progressive income tax
Dincreasing government spending on welfare benefits
✓ Correct answer
C: increasing the rate of progressive income tax
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government and the macroeconomy and see which topics are most likely to come up next.
Sign up free →