Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

A government is presently operating with a balanced budget. It is weighing the possible changes in tax revenue and government expenditure shown. Which three options could cause the budget to shift into surplus? (Options W/X/Y/Z give increase/reduce combinations.)

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

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