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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

The government is facing rising unemployment and slow economic growth.

Description

Economic Situation

The government is considering various fiscal measures to address these issues, including tax cuts and increased public spending.

  1. a

    Explain how increasing public spending can help reduce unemployment.

    Aim for approximately 4 distinct marking points.

    [4]

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Paper 2 structured question: Fiscal policy

Paper 2Structured Questions1 marks

Description

Fiscal Policy Overview

The government can adjust its spending and taxation to influence economic activity. This can include increasing public projects or cutting taxes to encourage consumer spending.

  1. a

    State one way the government can use fiscal policy to stimulate the economy.

    Aim for approximately 1 distinct marking point.

    [1]