3. FISCAL POLICY (Government Spending)

Question 1

What are the reasons for Government spending?

Answer 1

Question 2

Current Spending v

Capital Spending v

Transfer Spending

Answer 2

Question 3

What is EXPANSIONARY Spending?

Answer 3

Question 4

What is a GOVERNMENT BUDGET?

Answer 4

Question 5

Budget DEFICIT v Budget SURPLUS

Answer 5

Question 6

Describe what is meant by the term “AUSTERITY”

Your response must make reference to information provided in the article.

Answer 6

Question 7

What are the EFFECTS of a Budget DEFICIT?

Answer 7

Question 8

What are the BENEFITS of a Budget DEFICIT?

Answer 8

Question 9

Explain why measures to reduce a NATIONAL DEBT may CONFLICT with other government OBJECTIVES

Answer 9

Question 10

What is the link between BUDGET DEFICIT and INFLATION?

Answer 10

Question 11

What is the link between BUDGET DEFICIT and UNEMPLOYMENT?

Answer 11

Question 12

In 2014, Scotland’s GDP ranked it as the 14th richest country in the world, which was above the UK as a whole, however in 2016 the Institute of Fiscal Studies suggested that Scotland’s budget deficit was three times larger than that of the rest of the UK.

Describe what is meant by Scotland’s BUDGET DEFICIT.

Answer 12

Question 13

Describe FACTORS which may have caused Scotland’s BUDGET DEFICIT to be higher than the rest of the UK.

Answer 13

Question 14

Difference between NATIONAL DEBT and BUDGET DEFICIT.

Define the following terms:

1. PSNCR
2. National Debt

Answer 14

Question 15

Describe ways to REDUCE a BUDGET DEFICIT

Answer 15

Question 16

Problems REDUCING the NATIONAL DEBT and BUDGET DEFICIT.

Answer 16