Economics (AS & A Level) · Oct / Nov 2023 · Paper 12 · Question 30

A government reduces the rate of tax firms are charged on their land and buildings. How is this likely to affect the economy's price level and real output?

1. Aprice level: fall; real output: fall
2. Bprice level: fall; real output: rise
3. Cprice level: rise; real output: fall
4. Dprice level: rise; real output: rise

As printed in the paper