1. Which scenario represents a more expansionary outcome:
- (a) A fiscal deficit equivalent to 2 per cent of GDP (including the impact of automatic stabilisers equivalent to 1 per cent of GDP).
- (b) A fiscal deficit equivalent to 2 per cent of GDP completely 'structural' in nature.
- (c) A fiscal deficit of equivalent to 3 per cent completely 'cyclical' in nature.
- (d) You cannot tell because of the different cyclical and structural components in the previous options.

2. If net exports are running at 2 per cent of GDP, and the private domestic sector overall is saving an equivalent of 3 per cent of GDP, the government must be running a surplus equal to 1 per cent of GDP.

3. A nation can export less than the sum of imports, net factor income (such as interest and dividends) and net transfer payments (such as foreign aid) and run a government surplus:

Of equal proportion to GDP, while the private domestic sector is spending less than they are earning.
Of equal proportion to GDP, while the private domestic sector is spending more than they are earning.
That is larger, while the private domestic sector is spending less than they are earning.
None of the above are possible as they all defy the sectoral balances accounting identity.