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Economics · May / June 2019 · Paper 12 · Question 17

2281Supply-side policy

The government increases taxation in order to fund an increase in spending on government training schemes. Which policy combination would this involve?

  1. Afiscal policy and monetary policy only
  2. Bfiscal policy and supply-side policy only
  3. Cmonetary policy and supply-side policy only
  4. Dmonetary policy, supply-side policy and fiscal policy

As printed in the paper

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

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