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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?

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. This question tests the candidate's understanding of macroeconomic objectives and policies 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) Feb/Mar 2018 examination, Paper 1 Variant 2. It tests the topic of Macroeconomic Objectives and Policies and is worth 1 mark.

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