Which one of the following is most likely to cause an increase in a government's structural budget deficit?
A decline in income tax revenue resulting from a temporary economic recession
A permanent reduction in the rate of corporation tax accompanied by no change in government spending
An automatic rise in welfare benefit payments during a downturn in the trade cycle
An increase in the value of imports relative to exports during a period of rapid economic growth
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.