9 questions on Supply-Side Policies (AQA specification 2.5.2) from the A-Level Economics papers, 2017–2024. Every question links to the official mark scheme at the page its answer begins on.
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Extract E (lines 17–18) states: ‘A low rate of corporation tax has also contributed to both short-run and long-run economic growth.’ With the help of a diagram, explain how a low rate of corporation tax may cause short-run and long-run economic growth.
Explain why investment in infrastructure in the less-prosperous regions could help to improve the prosperity of people living in these regions.
After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government intervene in the economy to try to reduce the differences in the economic prosperity of the various regions of the United Kingdom? Justify your recommendation.
Evaluate the view that supply-side improvements in the UK economy can best be achieved through the use of interventionist policies.
After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the UK government provides financial and other support to companies involved in the production of commercial aircraft? Justify your recommendation.
Extract B (lines 13–14) states: ‘It can be argued that supply-side reforms have gone too far in creating a highly flexible workforce and the government needs to do more in terms of protecting the nation’s workers’. Using the data in the extracts and your knowledge of economics, evaluate the view that free market supply-side reforms to labour markets are beneficial to the UK economy.
Explain how fiscal policy can be used to try to improve the supply side of an economy.
Explain how government policies can reduce the natural rate of unemployment.
2.3.2 Employment and Unemployment · 2.5.2 Supply-Side Policies
Taking into account Extract D, and the original evidence presented in Extracts A, B and C, would you recommend that the government should intervene to support the UK steel industry? Justify your recommendation.
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