Day: April 13, 2022

A government reduced the tax on company profits from 28% to 20%.

Which statement best describes this policy?

Select ONE answer:

1. It is both a contractionary fiscal policy and a supply-side policy.
2. It is both an expansionary fiscal policy and a supply-side policy.
3. It is both an expansionary fiscal policy and an expansionary monetary policy.
4. It is both an expansionary monetary policy and a supply-side policy.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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