Economics (AS & A Level) · May / June 2021 · Paper 32 · Question 30

A government currently has a balanced budget. It is considering the possible variations in tax revenue and government expenditure shown. | option | tax revenue | government expenditure | |---|---|---| | W | increase | increase | | X | increase | reduce | | Y | reduce | increase | | Z | reduce | reduce | Which three options are likely to have the potential to move the budget into surplus?

1. AW, X and Y
2. BW, X and Z
3. CW, Y and Z
4. DX, Y and Z

As printed in the paper