A government has planned annual spending of £1,080 billion. It then increases its planned spending by £20 billion. Its annual revenue is £1,040 billion and national income is £2,800 billion.
Calculate the government's revised budget balance as a percentage of national income.
76 exam-style questions on OCR GCSE Economics 3.5 Fiscal policy, covering 3.5.1 Government spending and revenue, 3.5.2 Budget balance, surplus and deficit, 3.5.3 What is fiscal policy, 3.5.4 Calculate effects of taxes and spending, 3.5.5 Analyse effects of taxes and spending, 3.5.6 Costs and benefits of fiscal policy, and 3.5.7 Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.