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Economics (AS & A Level) · Oct / Nov 2022 · Paper 11 · Question 28

9708Fiscal policy

To encourage people to work, a government increases the minimum income level at which people start to pay income tax. Which types of macroeconomic policy are being followed?

  1. Afiscal policy ✓, monetary policy ✗, supply side policy ✓
  2. Bfiscal policy ✗, monetary policy ✓, supply side policy ✓
  3. Cfiscal policy ✓, monetary policy ✓, supply side policy ✓
  4. Dfiscal policy ✓, monetary policy ✓, supply side policy ✗

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Correct answer: A. fiscal policy ✓, monetary policy ✗, supply side policy ✓

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