Economics 0455 · IGCSE · Supply-side policy

Supply-side policy — practice question

A government can use a range of supply-side policy measures to improve economic performance. Which policy measure would not meet one of the government’s macroeconomic aims?

  • Achanging the tax system which leads to more tax evasion
  • Bencouraging foreign investment which improves the balance of payments
  • Cprivatising state industries which increases economic growth
  • Dretraining redundant workers which lowers unemployment

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