a) Which of the 4 economic agents is responsible for implementing fiscal policy? 1 Mark

b) If the economy of Antigua and Barbuda goes into a recession as a result of Covid-19, which results in actual GDP becoming less than potential GDP, to move the economy towards potential GDP, the government could: 1 Mark (Choose 1)

i. Increase government expenditure and/or raise tax rates

ii. Increase government expenditure and/or cut tax rates

iii. Decrease government expenditure and/or raise tax rates

iv. Decrease government expenditure and/or cut tax rates

c) Which of the two automatic stabilizers is described as being counter cyclical ie when the economy grows it declines and vice versa? 1 Mark (Choose 1)

i. Progressive income tax ii Unemployment Compensation

d) Given an example of an expansionary fiscal policy measure a government might use to stimulate an economy. 1 Mark