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Edexcel IAL Economics 2.3.2.4a influences on government expenditure

Practise linking government expenditure as a share of GDP to economic activity, welfare needs, fiscal policy choices and spending priorities.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • link weaker economic activity to higher government spending as a proportion of GDP
  • distinguish fiscal policy causes from unrelated exchange-rate or trade effects

2.3.2.4a - Influences on government expenditure: expenditure (G) • fiscal policy • the level of question 1

[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

A

Lower welfare payments

B

A lower exchange rate

C

Less economic activity

D

Increased business confidence

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