What is the correct answer to this A-Level Economics question?

Sign up to Oracle Prep to view the full model answer with examiner insights.

A-LevelEconomicsMacroeconomic PolicyMay/June 2020Paper 4 Q525 Marks

In January 2018 tax reductions were introduced in the US, and the Federal Reserve Bank (the US central bank) announced it would raise interest rates later in the year. Discuss how these policies may cause conflicts for a government in trying to achieve its macroeconomic aims.

Q: What topic does this question test?

This question tests Macroeconomic Policy in A-Level Economics (syllabus code 9708). It is worth 25 marks.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

🔒

Unlock the Examiner's Analysis

Join thousands of Cambridge students already using Oracle Prep

About This A-Level Economics Question

Topic

This structured question tests Macroeconomic Policy in A-Level Economics (syllabus code 9708). It is worth 25 marks.

Source

This question appeared in the Cambridge A-Level Economics May/June 2020 examination, Paper 4 Variant 2.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.