(a)[2]
Explain what economic growth means.
(b)[3]
Explain why cutting tax rates is treated as a supply-side policy.
(c)[4]
Analyse, with the aid of a diagram, how the supply of labour might change as the marginal rate of income tax falls.
(d)[4]
Explain, using the information above, what would happen to government revenue if tax rates were reduced, and the response to marginal tax rate changes is greater than one.
(e)[7]
Discuss whether the evidence from the data shows that economic growth is improved by tax reductions.