Economics · Oct / Nov 2019 · Paper 13 · Question 17

A government uses a mixture of fiscal policy measures and supply-side policy measures to stimulate growth in the economy. Which combination of policy measures will achieve this? | | fiscal policy measures | supply-side policy measures | |---|---|---| | A | increase government expenditure | increase skills training | | B | increase government investment | increase indirect taxes | | C | increase direct taxation | decrease unemployment benefit | | D | increase interest rates | decrease money supply |

1. Aincrease government expenditure / increase skills training
2. Bincrease government investment / increase indirect taxes
3. Cincrease direct taxation / decrease unemployment benefit
4. Dincrease interest rates / decrease money supply

As printed in the paper