Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

What must governments do to let automatic stabilisers operate?

  • Aadjust taxes in order to achieve a balanced budget
  • Bkeep welfare benefit rates and tax rates unchanged
  • Clower both taxes and government expenditure in a slump
  • Dlower taxes in a boom and raise taxes in a slump

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI