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 imply is the government’s chief 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

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