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CAIE A-Level Economics AS 5.2.6 Fiscal Policy Stance Questions

Practise distinguishing expansionary from contractionary fiscal policy by tracing spending and taxation changes through aggregate demand in CAIE Economics AS questions.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Distinguish expansionary from contractionary fiscal policy by identifying how government spending and taxation change aggregate demand.

CAIE A-Level Economics AS 5.2.6 Fiscal Policy Stance Questions question 1

[Maximum number: 1]

What is least likely to rise as a result of the use of expansionary fiscal policy?

A

aggregate demand

B

budget surplus

C

nominal income

D

inflation

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