Economics (AS & A Level) · Feb / March 2021 · Paper 32 · Question 22

Which combination of fiscal, monetary and supply-side policies is most likely to reduce unemployment?

1. Afiscal policy: increasing taxation; monetary policy: increasing interest rate; supply-side policy: increasing flexibility in the labour market
2. Bfiscal policy: increasing government expenditure; monetary policy: decreasing the money supply; supply-side policy: increasing education and training
3. Cfiscal policy: decreasing taxation; monetary policy: decreasing interest rate; supply-side policy: increasing flexibility in the labour market
4. Dfiscal policy: decreasing government expenditure; monetary policy: increasing the money supply; supply-side policy: increasing education and training

As printed in the paper