In 2019, the government of Colombia committed to a fiscal rule designed to limit its budget deficit to no more than 1.5% of GDP. However, following a series of external economic shocks, the government suspended this fiscal rule.
Explain one likely reason why a government might suspend a fiscal rule that limits the size of its budget deficit during an economic downturn.
44 exam-style questions on Edexcel A A Level Economics 4.5.3 Public sector finances. Each one has a worked solution and a mark scheme showing where the marks go.