Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 14

To improve its financial position, a government decided to reduce expenditure on investment in the public sector. There was not a fall in economic growth. What was the most likely effect of the government's action?

1. AAn original budget deficit was reduced.
2. BAn original budget surplus was reduced.
3. CConsumer expenditure decreased.
4. DPublic sector productivity decreased.

As printed in the paper