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Economic management — Question 6

QCAA 2022, Paper 1 · 1 mark

Q6 · 2022 · External assessmentUnclassified1 mark

QUESTION 6

Assume the Australian federal treasurer has handed down a deficit budget for the coming fiscal year, and subsequently there is a sudden downturn in consumer demand. The most likely change to the budget is (ceteris paribus)

(A) no change in unemployment benefit payments and the budget target is still achievable.

(B) an increase in unemployment benefit payments and a smaller budget deficit.

(C) a decrease in unemployment benefit payments and a smaller budget deficit.

(D) an increase in unemployment benefit payments and a larger budget deficit.

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