Aufgabe Vorschlag C - Aufgabe 3 · Abitur Hessen Wirtschaftslehre LK · bilingual Englisch 2022

3.1 Describe two demand-oriented fiscal political measures that can be applied in an economic recession.

Lösung: Possible measures include: - Direct government investment: The state acts as a buyer in the market (e.g. infrastructure projects, social housing construction). - Stimulating private consumption: Lowering income taxes, introducing consumer incentives or facilitating state-backed credit programs. - Increasing transfer payments: Raising unemployment benefits, child allowances or pensions to raise disposable income for households with a high marginal propensity to consume.

3.2 Develop two effect chains on the basis of two other fiscal political measures of the supply-oriented economic policy which show how the competitiveness of an economy in recession could be improved.

Lösung: Effect Chain 1 (Corporate Tax Relief): Tax cuts for corporations $\rightarrow$ lower production costs and higher retained earnings $\rightarrow$ higher expected return on investment $\rightarrow$ increased business investments $\rightarrow$ creation of jobs and modernization of capital stock $\rightarrow$ higher productivity and lower unit labor costs $\rightarrow$ improved competitiveness. Effect Chain 2 (Privatization / Deregulation): Privatization of state-owned enterprises or deregulation of bureaucratic hurdles $\rightarrow$ increased market competition and efficiency $\rightarrow$ innovation and cost optimization $\rightarrow$ ability to offer lower prices or superior quality goods $\rightarrow$ improved market expansion and national competitiveness.

3.3 Explain two points of criticism of a supply-oriented fiscal political approach.

Lösung: Points of criticism: 1. Redistribution of income and rising social inequality: Favoring corporations and high earners can widen the wealth gap, as tax reductions often benefit capital owners over wage earners. 2. Environmental degradation through deregulation: Weakening environmental laws to cut costs may lead to higher pollution and environmental damage. 3. Labor market precariousness: Deregulating labor markets can lead to lower job security, lower wages, and insecure employment.