Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

A government states that it plans to lower the amount of transfer payments in the economy. Which statement by the government is in line with this plan?

  • AThere need to be more incentives for unemployed workers to seek jobs.
  • BState pensions need to be increased.
  • CThe level of income tax needs to be raised.
  • DThe level of government expenditure needs to be increased.

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