Q.1.5 Which one of the following statements regarding fiscal policy and the budget is correct?(a) When the government plans to stimulate economic activity, it can increase spending or reduce taxes;(b) Revenue from tax is always greater than government spending in SouthAfrica;(c) Demand management only refers to fiscal policy;(d) A contractionary fiscal policy should be implemented to combatunemployment.
Q.1.5 Which one of the following statements regarding fiscal policy and the budget is correct?(a) When the government plans to stimulate economic activity, it can increase spending or reduce taxes;(b) Revenue from tax is always greater than government spending in SouthAfrica;(c) Demand management only refers to fiscal policy;(d) A contractionary fiscal policy should be implemented to combatunemployment.
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 3SQP
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Q.1.5 Which one of the following statements regarding fiscal policy and the budget is correct?
(a) When the government plans to stimulate economic activity, it can increase spending or reduce taxes;
(b) Revenue from tax is always greater than government spending in South
Africa;
(c)
(d) A contractionary fiscal policy should be implemented to combat
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