Economics Multiple Choice Question – 3 December 2022

What is most likely to be increased by a policy of increased direct taxes and lower government spending?

Select ONE answer:

1. the balance of payments deficit
2. the budget deficit
3. the rate of inflation
4. the level of unemployment

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4

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

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