Economics (AS & A Level) · Oct / Nov 2025 · Paper 34 · Question 19
9708Fiscal policy
What is an example of a demand-side macroeconomic policy that would reduce cyclical unemployment?
- Aan increase in government spending on new infrastructure such as roads
- Ban increase in government spending on retraining workers
- Ca reduction in the rate of tax on imports
- Dan increase in the rate of tax on goods and services
As printed in the paper
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Correct answer: A. an increase in government spending on new infrastructure such as roads
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