At the start of a financial year, a government forecasts that its tax revenue will equal its government spending.
Which change would result in a budget surplus?
Tax revenue and government spending both rise by the same amount
Tax revenue rises while government spending stays at its forecast level
Tax revenue stays at its forecast level while government spending rises
Tax revenue falls while government spending stays at its forecast level
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.