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A. A government's budget shows the government's planned revenues and expenditures for the upcoming year. Expansionary budget: Using expansionary fiscal policy, the government will reduce

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A. A government's budget shows the government's planned revenues and expenditures for the upcoming year. Expansionary budget: Using expansionary fiscal policy, the government will reduce tax and/or increase its expenditure (Budget deficit is used). When an economy is in recession or depression, the expansionary fiscal policy will be used to stimulate economic activities. When the govt increase their spending. it will directly increase the aggregate demand which will then increase the production of output and employment in the economy. The two reasons of the implementation of the expansionary budget by the Malaysian government in the article is the COVID-19 pandemic and amid rising political uncertainty. (3 marks) B 322.5 - 305 / 322 5 x100 = 5.4396 (2 marks) C. Malaysia's trade-dependent economy shrank by 17.1 percent in the second quarter following tough measures to control the coronavirus. Malaysia's economy suffered a sharp drop in the second quarter as it grappled with the coronavirus. The economic growth expected to be in 2021 will expected to be supported by a 2.7 percent rise in gross exports after a 5.2 percent fall in 2020, according to a separate report on the economic outlook. (4 marks) D. Two types of government expenditure is includes a 4.3 percent rise in the operating budget and the cost of running the government to 236.5 billion ringgits ($57.2 bn). Such as infrastructure will jump 38 percent to 69 billion ringgits ($16.7bn) in 2021 The estimated amount of revenue from Petronas in 2021 is 18 billion ringgits (34.4bn) in dividends from state energy firm Petronas. (3 marks) E The government policy mentioned in the article that the government plan to use to achieve economic recovery in 2021 is Monetary policy. Monetary policy will continue to provide support to the economic recovery in 2021. The monetary will be expansionary. (2 marks)

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