Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

The table presents government spending and revenue across a three-year period. What conclusion can be drawn from the data?

  • AA budget surplus becomes a budget deficit in year 3.
  • BNational debt is likely to be falling by the end of year 3.
  • CThe current account balance is in equilibrium in year 2.
  • DThe economy is at full employment equilibrium in year 2.

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