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2.5 Fiscal policy and supply-side policies

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Question 109

An economy has been operating with a positive output gap for three consecutive fiscal years, yet its government has recorded an overall fiscal deficit in each of these years. This persistence of a deficit under these macroeconomic conditions implies that the economy has a:

A

cyclical budget deficit that outweighs a structural budget surplus.

B

structural budget deficit that outweighs a cyclical budget surplus.

C

structural budget surplus that outweighs a cyclical budget deficit.

D

cyclical budget surplus that outweighs a structural budget deficit.

Markscheme

2.5 Fiscal policy and supply-side policies Questions

  1. A Level
  2. /Economics
  3. /2.5 Fiscal policy and supply-side policies

245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.

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