The Student Room Group

Economics questions

1. Which of the following would be an example of a supply-side policy to stimulate the economy?

A.
A reduction in the money supply
B.
A reduction in industrial output
C.
An increase in the interest rate
D.
A reduction in the tax rate
E.
None of the above

2. Which of the following would be considered supply-side policy?

A.
Increasing the minimum wage as a means of stimulating consumer spending
B.
Increasing government spending in order to bring the economy out of recession
C.
Targeting investment tax relief to businesses that use the money for investment in R&D
D.
Restrictions placed on the amount that can be imported
E.
All of the above

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