Economics (AS & A Level) · Feb / March 2023 · Paper 32 · Question 17
9708Fiscal policy
Which combination of circumstances is most likely to lead to an increase in a country's budget deficit?
- Atotal GDP decreases, unemployment rises, government spending decreases
- Btotal GDP decreases, unemployment rises, government spending no change
- Ctotal GDP increases, unemployment falls, government spending increases
- Dtotal GDP increases, unemployment falls, government spending no change
As printed in the paper
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Correct answer: B. total GDP decreases, unemployment rises, government spending no change
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