A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2024 · Q201 Mark

A government has a balanced budget. It decides to increase its spending by 10%. Which increase in government revenue would produce a budget surplus?

A-10%

B0%

C+10%

D+20%

✓ Correct answer

D: +20%

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2024 Paper 1 Variant 2, question 20.

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