Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Which set of conditions is most likely to cause a rise in a country’s budget deficit?

  • Atotal GDP: decreases; unemployment: rises; government spending: decreases
  • Btotal GDP: decreases; unemployment: rises; government spending: no change
  • Ctotal GDP: increases; unemployment: falls; government spending: increases
  • Dtotal GDP: increases; unemployment: falls; government spending: no change

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