A-LevelEconomicsMacroeconomic Objectives and PoliciesFeb/Mar 2018Paper 1 Q301 Mark

Which type of policy would have the most immediate effect in dealing with a deflationary economic downturn?

Q: What topic does this question test?

This question tests Macroeconomic Objectives and Policies in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Aincreasing the government's budget surplus

Bincreasing liquidity by assisting banks to lend more

Cinvesting in projects to improve transport networks

Dswitching the burden of taxation from earning to spending

✓ Correct Answer

The correct answer is B: increasing liquidity by assisting banks to lend more

📋 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.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Macroeconomic Objectives and Policies in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2018 examination, Paper 1 Variant 2.

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