Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

A nation is dealing with unemployment. It has a progressive income tax policy and benefits for the poor. The government wants to raise employment and cut income inequality. Which fiscal policy measures are most likely to meet these aims?

  • Adecrease the highest tax rate; decrease benefits for the poor
  • Bincrease the highest tax rate; decrease benefits for the poor
  • Cdecrease the lowest tax rate; increase benefits for the poor
  • Dincrease the lowest tax rate; increase benefits for the poor

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