A-LevelEconomicsFiscal PolicyMay/June 2017Paper 3 Q281 Mark
A government responds to cyclical fluctuations in output by keeping tax rates and benefit rates unchanged. What is the government seeking to achieve by adopting this fiscal policy? A to allow automatic stabilisers to work B to keep output at the full employment level C to maintain a constant balanced budget D to ensure that its budget is in surplus over the trade cycle
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