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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2025 · Q231 Mark

What is most likely to rise when the level of employment falls in a high-income economy?

Aconsumer confidence
Bgovernment expenditure on state benefits
Cgovernment revenue from income tax
Dthe rate of growth of real output

✓ Correct answer

B: government expenditure on state benefits

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2025 Paper 1 Variant 1, question 23.

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