A-LevelEconomicsMacroeconomic Objectives and Policies / Fiscal PolicyMay/June 2020Paper 1 Q281 Mark
Which combination correctly classifies an expansionary fiscal measure and its impact on a budget deficit? fiscal policy | budget deficit ---|--- A increased quantitative easing | unchanged B increased welfare spending | increased C lower income tax | reduced D lower interest rates | unchanged
Afiscal policy: increased quantitative easing, budget deficit: unchanged
Bfiscal policy: increased welfare spending, budget deficit: increased
Cfiscal policy: lower income tax, budget deficit: reduced
Dfiscal policy: lower interest rates, budget deficit: unchanged
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of macroeconomic objectives and policies / fiscal policy within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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