Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

A country’s government intends to reduce income tax rates. The country’s original equilibrium is shown by point X on the diagram. Which new equilibrium point would an economist expect as the outcome?

  • AA
  • BB
  • CC
  • DD

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI