5 marksFiscal Policy
CAPE Economics Unit 2 · 2008 · Paper 2 · Question 4(b)(iv)
Explain how fiscal policy can have a negative impact on inflation.
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Practise this questionOther parts of this question
- 4(a)(i)Explain how monetary policy can have a positive impact on inflation.[5 marks]
- 4(a)(ii)Explain how monetary policy can have a positive impact on aggregate demand.[5 marks]
- 4(a)(iii)Explain how monetary policy can have a positive impact on unemployment.[5 marks]
- 4(b)(i)Explain how fiscal policy can have a negative impact on budget deficit.[5 marks]
- 4(b)(ii)Explain how fiscal policy can have a negative impact on aggregate demand.[5 marks]
- 4(b)(iii)Explain how fiscal policy can have a negative impact on employment.[5 marks]
- 4(c)(i)Explain what is meant by 'automatic stabilizers'.[5 marks]
- 4(c)(ii)Identify TWO examples of automatic stabilizers.[4 marks]
- 4(d)(i)Explain what is meant by 'national debt of a country'.[6 marks]
- 4(d)(ii)Explain why 'national debt' is a burden for the country.[6 marks]
More practice: the rest of this paper · more Fiscal Policy questions · all CAPE Economics Unit 2 past papers