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Cambridge IGCSE Economics practice

Paper 2 structured question: Fiscal policy

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4

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Fiscal policy

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Paper 2Structured Questions4 marks

A country is experiencing a budget surplus due to high tax revenues and controlled spending.

Description

Budget Surplus Analysis

The government is considering how to utilize the surplus effectively.

  1. a

    Explain the potential benefits of a budget surplus for the economy.

    Aim for approximately 4 distinct marking points.

    [4]

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Paper 2 structured question: Fiscal policy

Paper 2Structured Questions2 marks

Description

Fiscal Policy Changes

The government plans to increase taxes and reduce spending to balance the budget.

  1. a

    State two measures the government could take to improve its budget balance.

    Aim for approximately 2 distinct marking points.

    [2]