Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

The table sets out the income tax rate paid by workers at various income levels in selected years in a developed economy. What economic objective was the government most likely trying to achieve by altering the tax rates between year 1 and year 2?

  • Ato reduce a current account deficit
  • Bto reduce income inequality
  • Cto reduce inflation
  • Dto reduce structural unemployment

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