In recent years, several advanced economies have suspended or abandoned strict 'balanced budget' rules. While fiscal hawks argue that maintaining a balanced budget is essential to control national debt and preserve sovereign credit ratings, opponents contend that strict fiscal targets restrict necessary public investment in infrastructure, education, and green technology, hindering long-term economic growth.
Evaluate whether maintaining a balanced budget is a desirable objective of macroeconomic policy.
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.