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Pearson Edexcel IAL Economics 4.3.5.1c significance of differing levels

Practise judging how different public spending shares affect growth, private investment, taxation and wider macroeconomic performance.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • evaluate higher public expenditure using growth, productivity and taxation effects
  • explain how lower spending may reduce crowding out but weaken services or demand
  • calculate or interpret percentage changes before judging effects on an economy

4.3.5.1c - significance of differing levels of public expenditure as a proportion of GDP on: • question 1

[Maximum number: 1]

Between 2014 and 2019 France's public expenditure as a proportion of GDP fell from 57.2% to 55.6\%.

Which one of the following is the likely impact of a decrease in public expenditure?

A

A decrease in unemployment

B

A decrease in crowding out

C

An increase in injections

D

An increase in inflationary pressures

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