Practice Questions · 9708

Government Macroeconomic Intervention

Original StepsToConquer questions written in CAIE style. These are practice questions, not past Cambridge examination questions.

Question 11 marks

Not finished

A government spends $90 billion \text{ and } receives$ 82 billion in revenue during one year. Which statement is correct?

A. It has an $8 billion budget surplus
$B$ . It has an $8 billion budget deficit that is likely to add to national debt
$C$ . Its national debt is exactly $8 billion
$D$ . It must use contractionary fiscal policy

Your answer

Select one answer1 mark

Predict the economic result before testing each option against the full causal chain.

Your answer

Select one answer1 mark

Predict the economic result before testing each option against the full causal chain.