Economics · Oct / Nov 2024 · Paper 12 · Question 22

The table shows government expenditure and revenue in selected years. | year | government expenditure $bn | tax revenue $bn | | 1 | 500 | 500 | | 2 | 600 | 400 | | 3 | 700 | 300 | What might explain the changes in the government's budget over the period?

1. Aa fall in the dependency ratio
2. Ba fall in the exchange rate
3. Can increase in cyclical unemployment
4. Dan increase in real GDP

As printed in the paper