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Tutorial 2 (Chapter 3:Government Policies)

1. List the sources of government revenue for Malaysia. (4m)


2. Explain the 3 types of budget policies, and identify the type of economic
conditions in which they may be implemented.(5m)
3. What are the objectives of government fiscal policy?(3m)
4. With the aid of diagram, show and explain how the government use the fiscal
policies to overcome economic recession? (9m).
5. With the aid of diagram, show and explain how the government use the fiscal
policies to overcome inflation problem? (9m).
6. User a graph, explain the instruments of monetary policies that can be use to
overcome economic recession? (9m).
7. With the aid of diagram, show and explain how the government use the interest
rate to overcome inflation problem? (9m).
8. Differentiate between expansionary fiscal policy and contractionary fiscal policy.
(15m)
9. Explain supply side objectives. (4m)
10. Explain any 3 supply side policies. (6m)
11. Differentiate direct tax and indirect tax. (4m)

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