Supply-side policy
4.4What the syllabus asks of you
- Definition of supply-side policy
- Supply-side policy measures: education and training
- Supply-side policy measures: infrastructure spending
- Supply-side policy measures: labour market reforms
- Supply-side policy measures: lower direct taxes
- Supply-side policy measures: deregulation
- Supply-side policy measures: improving incentives to work and invest
- Supply-side policy measures: privatisation
- Effects of supply-side policy measures on government macroeconomic aims: how supply-side policy measures may enable a government to achieve its macroeconomic aims
Read the notes first
Chapter 4: Supply-side policy
Drill this topic
Every question on Supply-side policy, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
27 questions
1May / June 2026 · Paper 11 · Q21Show mark scheme →
Aa decrease in a fixed exchange rate
Ba decrease in the rate of interest
Can increase in the money supply
Dan increase in spending on education
Mark scheme
2May / June 2026 · Paper 12 · Q21Show mark scheme →
Aa current account deficit
Breal GDP
Cthe HDI value
Dthe productivity of labour
Mark scheme
3Oct / Nov 2025 · Paper 12 · Q21Show mark scheme →
Athe level of unemployment
Bthe production possibilities
Cthe rate of inflation
Dthe rate of interest
Mark scheme
4Oct / Nov 2025 · Paper 13 · Q21Show mark scheme →
Aa decrease in the rate of corporation tax
Ba reduced top rate of income tax
Cimproved education and training provision
Dprivatisation of a state-owned industry
Mark scheme
5May / June 2025 · Paper 11 · Q20Show mark scheme →
Adecreasing government spending on school buildings
Bdecreasing the number of teachers in schools
Cincreasing taxation on private school fees
Dincreasing the provision of enterprise skills in schools
Mark scheme
6May / June 2025 · Paper 11 · Q21Show mark scheme →
Aan increase in corporation tax rates
Ban increase in interest rates
Can increase in the amount workers can earn before paying income tax
Dan increase in the government's regulations for starting a new business
Mark scheme
7May / June 2025 · Paper 12 · Q20Show mark scheme →
Aincreasing the money supply
Blowering interest rates
Creducing indirect taxation
Dretraining unemployed workers
Mark scheme
8Oct / Nov 2024 · Paper 12 · Q19Show mark scheme →
Afiscal policy
Bimport barriers
Cmonetary policy
Dsupply-side policy
Mark scheme
9May / June 2024 · Paper 11 · Q20Show mark scheme →
Aany policy designed to decrease inflation
Bany policy designed to decrease unemployment
Cany policy designed to increase imports
Dany policy designed to increase productivity
Mark scheme
10May / June 2024 · Paper 12 · Q20Show mark scheme →
AIt aims to increase the productive potential of the economy.
BIt aims to increase total demand in the economy.
CIt involves changes in the equilibrium foreign exchange rate.
DIt involves changes in the rate of interest.
Mark scheme
11Oct / Nov 2023 · Paper 12 · Q20Show mark scheme →
Acontrol of trade union power
Bhigher indirect taxation
Cprivatisation
Dskills training for workers
Mark scheme
12May / June 2023 · Paper 11 · Q20Show mark scheme →
Ashort run: less likely; long run: less likely
Bshort run: less likely; long run: more likely
Cshort run: more likely; long run: less likely
Dshort run: more likely; long run: more likely
Mark scheme
13May / June 2023 · Paper 12 · Q20Show mark scheme →
Aa decrease in country Z's employment rate
Ba decrease in country Z's exchange rate
Can increase in country Z's economic growth rate
Dan increase in country Z's interest rate
Mark scheme
14Oct / Nov 2022 · Paper 13 · Q19Show mark scheme →
Aincreasing interest rates
Bincreasing spending on education
Creducing the maximum permitted hours of work
Dreducing spending on infrastructure
Mark scheme
15May / June 2022 · Paper 11 · Q1Show mark scheme →
Achanging the tax system which leads to more tax evasion
Bencouraging foreign investment which improves the balance of payments
Cprivatising state industries which increases economic growth
Dretraining redundant workers which lowers unemployment
Mark scheme
16May / June 2022 · Paper 12 · Q19Show mark scheme →
Abuilding more affordable homes to improve labour mobility
Bcontrolling consumer spending to reduce inflation
Clowering interest rates to encourage purchase of expensive goods
Draising pensions to help retired people pay their fuel bills
Mark scheme
17Oct / Nov 2021 · Paper 12 · Q9Show mark scheme →
Adecreasing the number of training programmes
Bencouraging labour-intensive production
Cpromoting good industrial relations
Dreducing private sector investment
Mark scheme
18Oct / Nov 2021 · Paper 12 · Q20Show mark scheme →
Aencouraging the modernisation of factories
Boffering retraining to unemployed workers
Creducing taxes to provide incentives to work
Dreplacing government enterprises with private enterprises
Mark scheme
19Oct / Nov 2021 · Paper 13 · Q20Show mark scheme →
AThey aim to increase aggregate demand.
BThey aim to increase the long-run capacity of the economy.
CThey aim to reduce cyclical unemployment.
DThey aim to work in the short term.
Mark scheme
20Oct / Nov 2020 · Paper 13 · Q19Show mark scheme →
Aincreasing unemployment benefits
Blowering interest rates
Craising income tax
Draising the age of retirement
Mark scheme
21Oct / Nov 2019 · Paper 12 · Q19Show mark scheme →
Afiscal policy: no; monetary policy: no; supply-side policy: yes
Bfiscal policy: no; monetary policy: yes; supply-side policy: no
Cfiscal policy: yes; monetary policy: no; supply-side policy: yes
Dfiscal policy: yes; monetary policy: yes; supply-side policy: no
Mark scheme
22Oct / Nov 2019 · Paper 13 · Q17Show mark scheme →
Aincrease government expenditure / increase skills training
Bincrease government investment / increase indirect taxes
Cincrease direct taxation / decrease unemployment benefit
Dincrease interest rates / decrease money supply
Mark scheme
23May / June 2019 · Paper 12 · Q17Show mark scheme →
Afiscal policy and monetary policy only
Bfiscal policy and supply-side policy only
Cmonetary policy and supply-side policy only
Dmonetary policy, supply-side policy and fiscal policy
Mark scheme
24Oct / Nov 2018 · Paper 12 · Q16Show mark scheme →
AIt would increase government spending.
BIt would increase tariffs on imported goods and services.
CIt would introduce retraining schemes.
DIt would reduce the rate of interest.
Mark scheme
25May / June 2018 · Paper 12 · Q16Show mark scheme →
Aincreasing interest rates
Bincreasing taxation
Cproviding training courses
Dselling government bonds
Mark scheme
26May / June 2017 · Paper 11 · Q17Show mark scheme →
Aprovision of skills training: fiscal; payment for skills training: fiscal
Bprovision of skills training: monetary; payment for skills training: monetary
Cprovision of skills training: supply-side; payment for skills training: fiscal
Dprovision of skills training: supply-side; payment for skills training: monetary
Mark scheme
27Oct / Nov 2016 · Paper 13 · Q17Show mark scheme →
Aas fiscal and monetary policy
Bas fiscal and supply-side policy
Cas fiscal, monetary and supply-side policy
Das monetary and supply-side policy
Mark scheme