Table 1 shows four proposed fiscal-policy packages during a period of weak growth and high unemployment.
| Package | Change in spending (£bn) | Change in tax revenue (£bn) | Main measure |
|---|---|---|---|
| A | +20 | 0 | Higher administration spending |
| B | +12 | -8 | General tax cut |
| C | +10 | +8 | Transport investment |
| D | 0 | +15 | Higher income tax |
Which package is most likely to support growth and employment while causing the smallest direct increase in the budget deficit?
Package A
Package B
Package C
Package D
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.