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Data response (2)

Read the article Italy: Silvio Berlusconi pressed to make tax cuts by rightwing partner and answer the questions that follow. (You can read the article in the web window below, or follow the previous link to read the article in a new web window)


Question 1

Distinguish between a budget deficit and national debt.

Question 2

Describe the economic circumstances that Italy finds itself in at present.

Question 3

Using aggregate demand and supply diagrams, examine the impact of cutting taxation on Italian public finances, output, income and employment.

Question 4

Analyse which policy options are most appropriate to Italy in the current economic climate.