Economics 9708 · AS & A Level · Government macroeconomic policy objectives

Government macroeconomic policy objectives — practice question

The government chooses to increase the rate of Value Added Tax (General Sales Tax). What does this indicate about the government’s principal macroeconomic objective?

  • Ato reduce the budget deficit
  • Bto reduce the inequality of income distribution
  • Cto reduce the level of unemployment
  • Dto reduce the rate of inflation

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