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5 marksFiscal Policy

CAPE Economics Unit 2 · 2008 · Paper 2 · Question 4(c)(i)

Explain what is meant by 'automatic stabilizers'.

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Other parts of this question

  1. 4(a)(i)Explain how monetary policy can have a positive impact on inflation.[5 marks]
  2. 4(a)(ii)Explain how monetary policy can have a positive impact on aggregate demand.[5 marks]
  3. 4(a)(iii)Explain how monetary policy can have a positive impact on unemployment.[5 marks]
  4. 4(b)(i)Explain how fiscal policy can have a negative impact on budget deficit.[5 marks]
  5. 4(b)(ii)Explain how fiscal policy can have a negative impact on aggregate demand.[5 marks]
  6. 4(b)(iii)Explain how fiscal policy can have a negative impact on employment.[5 marks]
  7. 4(b)(iv)Explain how fiscal policy can have a negative impact on inflation.[5 marks]
  8. 4(c)(ii)Identify TWO examples of automatic stabilizers.[4 marks]
  9. 4(d)(i)Explain what is meant by 'national debt of a country'.[6 marks]
  10. 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