Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

(a)[8]

Explain how fiscal policy differs from monetary policy. Show how each can be used to raise aggregate demand.

(b)[12]

Discuss whether supply-side policy is more likely to succeed than fiscal policy when an economy experiences inflation.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding: the role of Fiscal Policy” …

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