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Cambridge IGCSE Economics practice

What is the primary purpose of fiscal policy?

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Show answerFiscal policy revisionRevise the key idea

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MCQ

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cambridge_mcq

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Topic

Fiscal policy

Exam-style question

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What is the primary purpose of fiscal policy?.

  1. A.To control inflation
  2. B.To influence economic activity
  3. C.To regulate the money supply
  4. D.To manage exchange rates

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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]