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GCE Economics 2022 Objective — Question 40

Question 40 of 50 from the General Certificate of Education (GCE) Economics 2022 Objective paper, with the correct answer and a full explanation.

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Fiscal policy measures imply a change in

  • A. only taxation measures
  • B. only taxation to control aggregate demand
  • C. only government expenditure to influence lending
  • D. government revenue and expenditure to regulate an economyCorrect

Explanation

Fiscal policy is the use of government expenditure, revenue, budget, taxation and debt operations - collectively - to regulate the economy.

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