Public sector finances

Q6(c) Using the material given plus your own knowledge, assess what Germany's budget deficit does to the wider macroeconomy.

Q5(a) State what is meant by a budget deficit (2-mark defined term).

Q5(b) Using a table of the UK budget deficit (£83.6bn in 2016 to £38.7bn in 2019), calculate the percentage decrease between March 2016 and March 2019.

Q5(c) Identify the change most likely to shrink a government's budget deficit.

Q6(c) Assess how worried UK policymakers ought to be about running a budget deficit and carrying national debt.

Q3(b) Given UK government tax revenue of £820bn and expenditure of £1 053bn for 2021–22, explain the likely impact on the government's budget balance.

Q5(a) Given 2021 US GDP of $23 trillion and national debt of $28.4 trillion, calculate the US national debt as a percentage of GDP.

Q5(b) Explain how running a budget deficit each year feeds into the size of the national debt.

Q5(c) Select what a larger US national debt would most likely increase (crowding out / inequality / poverty / unemployment).

Q1(c) Explain how year-after-year fiscal deficits feed through into the size of the US national debt.

Q2(a) Give one reason a country like Germany would resist letting national debt climb as a share of GDP (Figure 2).

Q6(a) Using Figure 1, explain what a balanced government budget is.

Q6(g) Evaluate the macroeconomic consequences if the UK government acted to shrink its budget deficit.

Q8 Evaluate what heavy budget deficits and public debt do to an economy, given Japan's shortfall of 4.6% of GDP and projected debt beyond 250%.

Q4(a) Give one plausible explanation for the UK dropping its 2019 budget surplus target.

Q4(b) Explain what scrapping that surplus target is likely to mean for UK national debt.

Q5(c) Give a short definition of a budget deficit.

Q2(b) Examine how the fiscal deficit links to national debt measured against GDP, using Figures 4 and 5 plus wider knowledge.