A government has annual revenue of £860bn and annual spending of £900bn. It plans to reduce its spending by £15bn and also to increase its revenue.
Which increase in annual revenue, together with the spending cut, would give the government a budget surplus of £20bn?
£45bn
£75bn
£25bn
£60bn
104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.