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Thursday 12 January 2017

Theme 2 & 4: Essay question on Fiscal policy (June 2007)

Pat exam question on Unit 2/4 stuff. As you will be tested on fiscal policy this year, it is useful for revision. Hand in Sunday please

a) 3 pts, 3 evaluation - approx 22 minutes in the exam (1 1/2 sides)
b) 4 pts. 4 evaluation - approx 33 minutes in the exam (2 1/2 sides)

(a) Between 1999 and 2001 the UK had a fiscal surplus but from 2002 there has been an increasing fiscal deficit. Examine the likely causes of this trend. (20)

(b) Evaluate the likely economic effects of an increasing fiscal deficit for the UK economy. (30)

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