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Economics (AS & A Level) · May / June 2021 · Paper 12 · Question 4

9708Economic methodology

Which statement would be classified by an economist as a positive statement?

  1. ABalancing the budget cannot be more important than reducing inflation.
  2. BMaintaining the real income of pensioners needs to be a priority.
  3. CThe government should increase indirect taxation.
  4. DThe government will not increase direct taxation.

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Correct answer: D. The government will not increase direct taxation.

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