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Economic management — Question 4

QCAA 2020, Paper 1 · 1 mark

Q4 · 2020 · External assessmentUnclassified1 mark

QUESTION 4

Within a total government budget of $300 billion, the planned surplus for the year was $4 billion. In that year, the actual budget recorded an unplanned increase of $6 billion in government expenditure. In the following year, the planned deficit was $2 billion. This suggests that

(A) the budget outcome is expansionary.

(B) the budget outcome is contractionary.

(C) the government is aiming to repay debt.

(D) the government expects a recession in the following year.

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