Economics · May / June 2022 · Paper 12 · Question 23

A government wants to reduce both its budget deficit and the amount of poverty in its country. Which fiscal policy measure is most likely to achieve both of these aims?

1. Adecreasing the rate of progressive income tax
2. Bdecreasing government spending on welfare benefits
3. Cincreasing the rate of progressive income tax
4. Dincreasing government spending on welfare benefits

As printed in the paper