The Budget Deficit and the National Debt (AQA A-Level Economics): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the key difference between the budget deficit and national debt?
What is the key difference between the budget deficit and national debt?
Deficit is a flow; debt is a stock
What happens to the cyclical budget deficit during a recession?
What happens to the cyclical budget deficit during a recession?
It rises as tax revenues fall
Which factor contributes to the UK's structural budget deficit?
Which factor contributes to the UK's structural budget deficit?
An ageing population
What are automatic stabilisers in fiscal policy?
What are automatic stabilisers in fiscal policy?
Progressive taxes & income-related benefits
How does financial crowding out occur?
How does financial crowding out occur?
Govt borrowing raises rates, cuts investment
Why is the debt to GDP ratio more meaningful than absolute debt figures?
Why is the debt to GDP ratio more meaningful than absolute debt figures?
It shows debt relative to ability to pay
Which is an example of deadweight debt?
Which is an example of deadweight debt?
Borrowing to finance welfare benefits
What does counter-cyclical demand management involve?
What does counter-cyclical demand management involve?
Deflate in boom, reflate in recession
What timing problem do free-market economists identify with discretionary fiscal policy?
What timing problem do free-market economists identify with discretionary fiscal policy?
Policies take effect after conditions change
What is the main role of the Office for Budget Responsibility?
What is the main role of the Office for Budget Responsibility?
Assess if policies meet fiscal targets