Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

The table sets out a government’s expenditure and tax revenues during 2010-2013. What effect did the shifts in the government’s fiscal balance have on the national debt and on aggregate expenditure?

  • A2010-2011; no change; no change
  • B2011-2012; increase; raise
  • C2012-2013; decrease; lower
  • D2012-2013; increase; raise

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