Fiscal policy continued: past paper questions
Real questions on fiscal policy continued
The newest 20 of 23 written questions. Open one to see it on the real paper.
- 2281/21 · May/June 2025 · Q4c[6]
Analyse how a cut in the corporation (corporate income) tax rate can increase economic growth.
See it on the paper → - 2281/21 · May/June 2025 · Q4d[8]
Discuss whether or not a decrease in government spending will reduce inflation.
See it on the paper → - 2281/23 · October/November 2024 · Q3d[8]
Discuss whether or not a government should tax sports equipment.
See it on the paper → - 2281/22 · May/June 2024 · Q4a[2]
Identify two reasons why tax revenue is likely to fall during a recession.
See it on the paper → - 2281/22 · May/June 2024 · Q5d[8]
Discuss whether or not an increase in government spending on housing would benefit an economy.
See it on the paper → - 2281/22 · October/November 2023 · Q1d[4]
Explain two ways a government could redistribute income.
See it on the paper → - 2281/23 · October/November 2023 · Q4d[8]
Discuss whether or not a decrease in government spending will increase unemployment.
See it on the paper → - 2281/21 · May/June 2023 · Q1h[6]
Discuss whether or not Australia is likely to have a budget deficit in 2026. Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.
See it on the paper → - 2281/21 · May/June 2023 · Q2c[6]
Analyse the causes of an increase in a government’s tax revenue.
See it on the paper → - 2281/22 · May/June 2022 · Q1c[2]
State why Bhutan’s 2018 government budget is likely to have increased total demand in Bhutan.
See it on the paper → - 2281/23 · 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 → - 2281/21 · May/June 2021 · Q1c[2]
Explain whether Nigeria had a budget deficit or a budget surplus in 2017.
See it on the paper → - 2281/21 · May/June 2021 · Q1d[4]
Explain how government spending on training may increase tax revenue in the long run.
See it on the paper → - 2281/21 · May/June 2021 · Q1f[5]
Analyse how a government could encourage firms to increase their investment. (f)
See it on the paper → - 2281/21 · May/June 2020 · Q1e[4]
Analyse why Vietnam’s budget deficit may decline in the future.
See it on the paper → - 2281/21 · May/June 2020 · Q4c[6]
Analyse how tax cuts could increase exports.
See it on the paper → - 2281/22 · May/June 2020 · Q5b[4]
Explain two fiscal policy measures that can be used to reduce poverty.
See it on the paper → - 2281/22 · October/November 2019 · Q2c[6]
Analyse how fiscal policy could be used to stop a recession.
See it on the paper → - 2281/22 · October/November 2019 · Q3a[2]
Identify two ways a government could encourage saving.
See it on the paper → - 2281/22 · October/November 2019 · Q3c[6]
Analyse how an increase in investment could influence inflation.
See it on the paper →
What examiners said
There was a full range of responses to this question. The strongest answers recognised that a progressive income tax system takes not just a larger amount of the income of the rich but more significantly a higher proportion of the income of the rich. It is important that candidates are aware that not only a progressive income tax system but also proportional income tax and regressive income tax sy...
— Examiner report, October/November 2023, 2281/22 Q1(d) (Cambridge)
This question required a discussion on the link between government spending and employment. Most candidates were able to explain how a reduction in government spending in general would reduce total demand and, therefore, employment levels in an economy. Stronger answers examined how different types of government spending e.g. education and training and subsidies to firms had an impact on different...
— Examiner report, October/November 2023, 2281/23 Q4(d) (Cambridge)
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, 2281/21 Q1(h) (Cambridge)
Past papers, syllabus and examiner reports © UCLES (Cambridge University Press & Assessment). Questions are matched to topics from the official syllabus. AssessPro is independent and not endorsed by Cambridge.