Edexcel A-Level Economics AS 2.3.2 4a Influences on Government Expenditure Expenditure G Fiscal Policy the Level of Questions

Practise interpreting government expenditure as a share of GDP and identifying how weaker economic activity can increase that measured proportion.

Exam points

identify weaker economic activity as a cause of a higher government-expenditure share of GDP

[Maximum number: 1]

South Africa's annual government expenditure as a proportion of GDP increased from 31.4\% to 34.6\% between 2012 and 2019.

Which one of the following is most likely to have contributed to this increase in government expenditure as a proportion of GDP?

A Lower welfare payments
B A lower exchange rate
C Less economic activity
D Increased business confidence

Lower welfare payments

A lower exchange rate

Less economic activity

Increased business confidence

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Edexcel A-Level Economics AS 2.3.2 4a Influences on Government Expenditure Expenditure G Fiscal Policy the Level of Questions question 1