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2.5 Fiscal policy and supply-side policies

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Question 21

Which one of the following statements about the implementation of fiscal policy is correct?

A

Expansionary fiscal policy is typically characterized by a reduction in government spending and an increase in income tax.

B

Automatic stabilizers reduce the severity of economic fluctuations without any deliberate legislative action by the government.

C

A budget surplus occurs when government expenditure exceeds tax revenue in a given financial year.

D

Fiscal policy is solely managed by the central bank to control inflation through changes in exchange rates.

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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