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Economics · Oct / Nov 2016 · Paper 13 · Question 17

2281Supply-side policy

A government decides to increase the rate of income tax and spend the extra revenue on providing training colleges. How might this be described?

  1. Aas fiscal and monetary policy
  2. Bas fiscal and supply-side policy
  3. Cas fiscal, monetary and supply-side policy
  4. Das monetary and supply-side policy

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Correct answer: B. as fiscal and supply-side policy

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