Economics 2281 · O Level · Fiscal policy

Fiscal policy — practice question

The table gives the income tax rate paid by workers at different income levels in selected years for a developed economy. Which economic objective was the government most likely aiming to achieve when it changed 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

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