AS Paper 2, June 2024The UK Economy – Performance and Policies

AS Paper 2, June 2024, Q5(c)

Which one of the following will most likely lead to a reduction in the budget deficit?

Multiple choice1 mark

Context

Table: UK budget deficit – March 2016 £83.6bn, 2017 £56.3bn, 2018 £56.0bn, 2019 £38.7bn.

AAn increase in government spending and a decrease in taxation
BAn increase in taxation and a decrease in government spending
CAn increase in the value of exports and a decrease in the value of imports
DAn increase in the value of imports and a decrease in the value of exports

Specification topics

Demand-side policies

Revision notes

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