1. Since 2010, the UK government has made some progress in reducing the budget deficit by implementing a tight fiscal policy. The deficit has fallen from 9.9 % of GDP (post war) to almost 2% of GDP in 2017-18. Using an appropriate diagram, evaluate the effects of pursuing such a policy on other macro-economic objectives.

1. Since 2010, the UK government has made some progress in reducing the budget deficit by implementing a tight fiscal policy. The deficit has fallen from 9.9 % of GDP (post war) to almost 2% of GDP in 2017-18. Using an appropriate diagram, evaluate the effects of pursuing such a policy on other macro-economic objectives.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 38CTQ: Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending...

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