A country is experiencing unemployment. It has a progressive income tax policy and benefits for the poor. The government aims to increase employment and reduce income inequality. Which fiscal policy measures are most likely to achieve these aims?

A.
B.
C.
D.
Economics
IGCSE&ALevel
CAIE
Exam No:0455_s21_qp_12 Year:2021 Question No:18

Answer:

C

Knowledge points:

4.3.9 effects of fiscal policy on government macroeconomic aims (How fiscal policy measures may enable the government to achieve its macroeconomic aims. Note: aggregate demand and aggregate supply are not required.)

Solution:

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