Unit 3: Macroeconomics
Topic 3.6: Demand Management — Fiscal Policy Questions
Practice 20 exam-style questions for IB Economics Topic 3.6. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
2Define2 marks
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Orlan raised its **transfer payments** to families with children.
Define the term **transfer payments**.
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**Expansionary fiscal policy** helped Tessaly recover from recession.
Define the term **expansionary fiscal policy**.
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Norvane's **fiscal policy** aims to keep unemployment below 5%.
Define the term **fiscal policy**.
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A text explains that Talvane’s government changed its fiscal policy after the election.
Define the term fiscal policy.
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**Fiscal policy** in Kessland became tighter in 2024.
Define the term **fiscal policy**.
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Belmare used **expansionary fiscal policy** after severe floods.
Define the term **expansionary fiscal policy**.
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Corvane's government adopted an **expansionary fiscal policy** in 2023.
Define the term **expansionary fiscal policy**.
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Norvane's **budget deficit** reached 5% of GDP in 2024.
Define the term **budget deficit**.
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An indirect tax such as VAT (value added tax) is:
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2026
Calculate the maximum increase in real GDP.
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Halden cut **transfer payments** to reduce its deficit.
Define the term **transfer payments**.
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A text says that Oredon’s budget deficit widened to 6 % of GDP last year.
Define the term budget deficit.
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Oredon's **expansionary fiscal policy** raised its budget deficit.
Define the term **expansionary fiscal policy**.
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Maribel's government used **fiscal policy** to support jobs during a recession.
Define the term **fiscal policy**.
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