A way of helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
Correct answer: C. interventionist policies
- A. New classical economists
- B. left-wing theorists
- C. interventionist policies
- D. monetarists
Explanation
Wage subsidies, lower business taxes and capital subsidies are government measures intended to stimulate employment and investment in depressed regions. Such active government support is described as an interventionist policy.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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