Economics · May / June 2022 · Paper 11 · Question 1
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?
- Achanging the tax system which leads to more tax evasion
- Bencouraging foreign investment which improves the balance of payments
- Cprivatising state industries which increases economic growth
- 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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