Explain expansionary fiscal policy
A budget extract in a New Zealand inflation report says the government increases infrastructure spending during a downturn. Explain the likely macroeconomic effect. Enter the answer and choose the interpretation that best matches the macroeconomic evidence.
Worked practice: economic evidence and answer
Identify the economic evidence first, then state the result and interpretation.
Write a full answer
Now write the response in full, in your own words — this is what the exam asks for. The AI marks it on the same moves you built above (focus, evidence, technique, judgement) and gives feedback on reasoning, evidence, and expression.