Economics (AS & A Level) · Oct / Nov 2024 · Paper 13 · Question 22

Changes in fiscal policy can affect the distribution of income and wealth. Which combination of fiscal policy would most likely be regressive?

1. Aa fall in the lowest level of income when income tax has to be paid and a fall in the rate of inheritance tax
2. Ba fall in the charge made for visits to a doctor and a rise in the level of unemployment benefit
3. Ca rise in the rate of income tax charged at higher levels of income and a rise in the standard rate of corporation tax
4. Da rise in the standard rate of income tax and a fall in the standard rate of goods and services tax

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