Day: July 29, 2021

To improve its financial position a government decided to reduce expenditure on investment in the public sector.  Despite this, there was NOT a fall in economic growth

What was the MOST likely effect of the government’s action?

Select ONE answer:

1. An original budget deficit was reduced.
2. An original budget surplus was reduced.
3. Consumer expenditure decreased.
4. Public sector productivity decreased.

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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