Answer these questions.Topic is Fiscal Policy

2. Explain a chain of reasoning from an increase in tax allowances to economic growth. Fiscal Policy w/s 3 Budget and National Debt Revenue --Spending 850 800 750 700 Revenue / Spending in billion pounds 650 600 550 500 2010 2011 2012 2013 2014 2015* 2016* 2017* 2018* 2019* 2020* 1. Calculate the UK budget balance in 2010 (remember units e.g. fbn) 2. Explain how the data shows that the UK's public finances have been improving since 2010 (past paper style question 4 marks: you need two points and must use figures from the graph)