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A-LevelEconomicsGovernment Macroeconomic InterventionMay/June 2025Paper 1 Q221 Mark

A government increases direct taxation to reduce its budget deficit. How is this likely to affect the government's ability to achieve its macroeconomic objectives? [Figure 22.1]

Aless likely, less likely, less likely
Bmore likely, less likely, more likely
Cless likely, more likely, less likely
Dmore likely, more likely, less likely

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of government macroeconomic intervention within the Economicssyllabus. The examiner's mark scheme requires...

📋 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...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) May/June 2025 examination, Paper 1 Variant 2. It tests the topic of Government Macroeconomic Intervention and is worth 1 mark.

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