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.
31 mark
An indirect tax such as VAT (value added tax) is:
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An indirect tax such as VAT (value added tax) is:
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A leakage (withdrawal) from the circular flow that reduces the multiplier effect is:
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One limitation of using fiscal policy to manage the economy is:
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National debt is different from a budget deficit in that:
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National debt is different from a budget deficit in that:
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Contractionary fiscal policy is most appropriate when:
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If the marginal propensity to consume is 0.8, the value of the multiplier is:
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Contractionary fiscal policy is most appropriate when:
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