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Economic management — Question 7

QCAA 2025, Paper 1 · 1 mark

Q7 · 2025 · External assessmentUnclassified1 mark

QUESTION 7

Assume the Federal Government has decided to proceed with 80 essential infrastructure projects and cease spending on 100 proposed infrastructure projects. A possible rationale for this decision is that the economy

(A) does not require infrastructure at this time.

(B) is at a low point on the economic cycle.

(C) is already operating at peak capacity.

(D) has a deflationary gap.

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