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WAEC Economics 2022 Question 40

Question 40

Public Finance

Fiscal policy measures imply a change in

  1. A.only taxation to control aggregate demand
  2. B.bank rates to influence spending
  3. C.only government expenditure to regulate an economy
  4. D.government revenue and expenditure to regulate an economy
Show the answer and explanation

Answer: D (government revenue and expenditure to regulate an economy)

Explanation

Fiscal policy uses both taxes (revenue) and government spending.