Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

What must a government do in order to keep its budget balanced?

  • Akeep tax rates and benefit rates unchanged in a slump
  • Braise taxes in a slump and lower taxes in a boom
  • Craise both tax rates and benefit rates in a boom
  • Draise both tax rates and benefit rates in a slump

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