a) Identify and explain how a government can implement discretionary fiscal policy to overcome an inflationary economy. (6 marks) b) Identify and explain THREE (3) limitations of discretionary fiscal policy. (6 marks) c) The table below provides a country's government outlays and tax receipts from 2010 to 2013. i) Calculate the budget balance for each year. (4 marks) ii) During which years did the country have a balanced budget, budget surplus and budget deficit? (4 marks)

Budget Balance Budget Surplus/ Tax receipts Government outlays Year Budget Deficit or (billion dollar) (billion dollar) (billion dollars) Balanced Budget 2010 538 540 2011 535 545 2012 572 570 2013 580 580