Quelpr
6 marksFiscal Policy

CAPE Economics Unit 2 · 2013 · Paper 2 · Question 4(c)

Explain the 'crowding out effect' and state how this effect can be avoided.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 4(a)(i)Define the term 'fiscal policy'.[1 mark]
  2. 4(a)(ii)Discuss THREE ways in which fiscal policy can be used by Caribbean governments to increase the level of employment and output in their economies.[12 marks]
  3. 4(b)Outline THREE reasons why some fiscal measures may NOT work in the small open economies of the Caribbean.[6 marks]

More practice: the rest of this paper · more Fiscal Policy questions · all CAPE Economics Unit 2 past papers