1. Fiscal Policy
Answer all the questions below
1. Define Fiscal Policy
2. Which two occasions does Fiscal Policy generally get announced?
3. Define the term Budget Deficit
4. What is the term used to describe fiscal policy which would reduce
aggregate demand
5. Draw and AD curve which would show this
6. The Government is looking at decreasing unemployment in the economy
outline how they could do this. Use a graph to support your answer
7. Through the use of Fiscal Policy how would a government increase the Long
Run Aggregate Supply?
8. With relation to the Balance of Payments what options are there for
government if they wished to improve the trade balance?
9. Outline what each of these options includes
10. Outline an advantage of Fiscal Policy
11. Outline a disadvantage of Fiscal Policy
12. Find out how much the Government currently spends on Defence, Education
and Social Security