Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

A government’s budget is presently balanced. It is examining the possible changes in tax revenue and government expenditure shown below. Which three options are most likely to have the ability to push the budget into surplus? (options: W increase/increase; X increase/reduce; Y reduce/increase; Z reduce/reduce)

  • AW, X and Y
  • BW, X and Z
  • CW, Y and Z
  • DX, Y and Z

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