Supply-Side Policies — Edexcel Past Paper Questions

Discuss supply-side policies the UK government could introduce to stimulate economic growth.

2.6.3 Supply-Side Policies

With reference to Extract B, discuss the benefits of an increase in infrastructure spending on the UK economy. Use an aggregate demand and aggregate supply diagram to support your answer.

2.2.4 Government Expenditure · 2.6.3 Supply-Side Policies

In 2018, the United States Government cut the corporation tax rate (tax on company profits) from 35% to 21%. Income tax rates for US citizens were also reduced: for example, the top rate of income tax was cut from 39.6% to 37%. (Source adapted from: https://www.nytimes.com/) Evaluate the likely impact of cutting tax rates as a policy to increase economic growth.

One of two options in Section C — candidates answered this or the other.

4.5.2 Taxation · 2.6.3 Supply-Side Policies

Evaluate the microeconomic and macroeconomic impact of large infrastructure projects such as the building of a third airport in Istanbul.

One of two options in Section A — candidates answered this or the other.

2.2.4 Government Expenditure · 2.6.3 Supply-Side Policies

Apart from literacy and numeracy skills in young workers, examine one reason for the trend in productivity in the UK, over the period shown in Figure 4.

2.6.3 Supply-Side Policies · 4.1.9 International Competitiveness

Evaluate the microeconomic and macroeconomic effects of a decline in the literacy and numeracy skills of a country’s young workers.

One of two options in Section B — candidates answered this or the other.

2.6.3 Supply-Side Policies · 3.5.1 Demand for Labour

Evaluate the likely microeconomic and macroeconomic effects of the supply-side policies recently introduced in Indonesia.

One of two options in Section B — candidates answered this or the other.

2.6.3 Supply-Side Policies · 4.3.3 Development Strategies

Discuss ‘looser fiscal policy’ and ‘supply-side reforms’ (Extract A, lines 20 and 21) that may be used by governments of Eurozone countries to increase economic growth.

2.6.2 Demand-Side Policies · 2.6.3 Supply-Side Policies