Assess whether a government should always aim to balance its budget rather than have a budget surplus or a budget deficit.
Exam No:9708_w23_qp_21 Year:2023 Question No:4(b)
Answer:
Knowledge points:
5.1.1 use of government policy to achieve macroeconomic objectives: price stability, low unemployment, economic growth (policy conflicts and trade-offs are not required)
5.2.2 distinction between a government budget deficit and a government budget surplus
Solution:
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