Economics 9708 · AS & A Level · Supply-side policy

Supply-side policy — practice question

An economy is currently operating at full employment. Which policy is most likely to cause real national output to rise in the short term without any increase in the rate of inflation?

  • Aadditional spending on subsidies to increase export earnings
  • Bthe central bank introduces quantitative easing
  • Clabour market reforms result in increased output per hour worked
  • Dthe government reduces income tax rates

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