0455.4.3.8 — fiscal policy measures The tax and spending changes, in the form of fiscal policy, that cause budget balance or imbalance. Including calcula: past paper questions
Real questions on 0455.4.3.8 — fiscal policy measures the tax and spending changes, in the form of fiscal policy, that cause budget balance or imbalance. including calcula
The newest 20 of 39 written questions. Open one to see it on the real paper.
- 0455/23 · May/June 2026 · Q1d[4]
Explain the difference between fiscal policy and monetary policy.
See it on the paper → - 0455/23 · May/June 2026 · Q1g[6]
Discuss whether or not increased government spending on the airport will benefit the economy of the Isle of Man.
See it on the paper → - 0455/21 · October/November 2025 · Q3a[2]
Identify two fiscal policy measures.
See it on the paper → - 0455/22 · October/November 2025 · Q3d[8]
Discuss whether or not perfume should be taxed at a higher rate than food.
See it on the paper → - 0455/11 · October/November 2024 · Q21[1]
Which combination of policy measures would be most effective in returning the economy to the year 1 level of activity?
See it on the paper → - 0455/21 · October/November 2024 · Q5d[8]
Discuss whether or not fiscal policy is effective in reducing poverty.
See it on the paper → - 0455/11 · May/June 2024 · Q18[1]
What is most likely to have been the economic objective of the government in changing the tax rates between year 1 and year 2?
See it on the paper → - 0455/22 · May/June 2024 · Q4a[2]
two reasons why tax revenue is likely to fall during a recession.
See it on the paper → - 0455/22 · May/June 2024 · Q5d[8]
whether or not an increase in government spending on housing would benefit an economy.
See it on the paper → - 0455/12 · October/November 2023 · Q17[1]
What is an example of government macroeconomic policy?
See it on the paper → - 0455/12 · October/November 2023 · Q18[1]
Why would devaluing the international value of an economy’s currency help reduce unemployment?
See it on the paper → - 0455/12 · October/November 2023 · Q22[1]
Which change to fiscal policy is most likely to reduce cyclical unemployment in an economy?
See it on the paper → - 0455/23 · October/November 2023 · Q4b[4]
Explain two reasons why a reduction in their working hours may not cause public sector workers to move to working in the private sector.
See it on the paper → - 0455/23 · October/November 2023 · Q4d[8]
Discuss whether or not a decrease in government spending will increase unemployment.
See it on the paper → - 0455/21 · May/June 2023 · Q1h[6]
whether or not Australia is likely to have a budget deficit in 2026.
See it on the paper → - 0455/21 · May/June 2023 · Q2c[6]
the causes of an increase in a government’s tax revenue.
See it on the paper → - 0455/21 · May/June 2022 · Q2c[6]
how an increase in income tax can affect a country’s inflation rate.
See it on the paper → - 0455/22 · May/June 2022 · Q1c[2]
why Bhutan’s 2018 government budget is likely to have increased total demand in Bhutan.
See it on the paper → - 0455/22 · February/March 2022 · Q2d[8]
Discuss whether or not a reduction in income tax will end a recession.
See it on the paper → - 0455/23 · October/November 2021 · Q1g[6]
Discuss whether or not an increase in Senegalese government spending will stop the country experiencing a recession.
See it on the paper →
What examiners said
This question proved challenging for candidates, as many simply looked at the impact of the expansion of the coal industry on the Australian economy, overlooking all of the information on the Australian economy in the fact file. For example: ‘Australia is likely to have a budget deficit in 2026 because of the decline in demand for coal.’ The expectation was that as the question included reference...
— Examiner report, May/June 2023, 0455/21 Q1(h) (Cambridge)
There were some strong answers to this question which identified what had caused an increase in tax revenue e.g. rise in employment, higher income, more spending by consumers, greater profits by firms and increased imports and then linked these changes to the relevant tax e.g. income tax, sales tax, corporation tax and tariffs. Many answers showed a chain of reasoning. Less successful responses te...
— Examiner report, May/June 2023, 0455/21 Q2(c) (Cambridge)
Most candidates showed a good understanding of both income tax and inflation rate. Good answers simply stated that higher income tax reduced disposable income, reducing consumer spending and total demand which led to lower prices and lower inflation. A few stated lower demand-pull inflation. The strongest answers also commented that if workers asked for pay rises to offset lower disposable income....
— Examiner report, May/June 2022, 0455/21 Q2(c) (Cambridge)
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