Quiz 11 (O Level Unit 5) Among the following, what is not an aim of government policies? Price stability Inflation Low unemployment Economic growth Why is ‘economic growth’ an important aim of government policies? Because economic growth always reduces inflation. Because economic growth always increases equality among all. Because economic growth enables people to enjoy higher standards of living. Because it allows government to control its people. Increasing public spending and/or cutting taxes to boost aggregate demand, output and employment is known as ___________________. expansionary fiscal policy deflationary fiscal policy expansionary monetary policy exchange rate policy _______________________ involves in reducing public spending and/or raising taxes. Expansionary fiscal policy Deflationary fiscal policy Expansionary monetary policy Deflationary fiscal policy Raising taxes on income and profits reduces work incentives, employment and economic growth. True False Among the following, what will the government do if it wants to use expansionary monetary policy? raise taxes raise interest rates reduce interest rates increase government spending ____________________ means selling of state owned businesses to private individuals and groups. Labour market reforms Privatisation Nationalisation Deregulation If the aggregate supply cannot match with the rise in aggregate demand, then there will be _________________. inflation deflation depreciation appreciation ___________________ is money paid to the Government by individuals and businesses. Quotas Interest Subsidies Taxation Among the following, what is a direct tax? income tax expenditure tax goods & services tax excise duty Loading … Question 1 of 10 Download this Quiz