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Economics · May / June 2022 · Paper 11 · Question 1

2281Supply-side policy

A government uses different supply-side policy measures to improve economic performance. Which policy measure would not satisfy one of the government's macroeconomic aims?

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

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Correct answer: A. changing the tax system which leads to more tax evasion

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