'Keynesian policies to solve the problem of unemployment will not work because they will conflict with the attainment of other key macroeconomic aims.' Assess the accuracy of this statement.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2019). The mark or mark type is shown in brackets.

1. [25] A detailed explanation of Keynesian demand management theory and how associated policies might be used to solve the problem of unemployment.
2. [25] Evaluative comment should be provided to consider whether such policies are likely to work.
3. [25] Candidates should ensure that they discuss the extent to which these polices will conflict with the attainment of other key macroeconomic goals. For example, deficit spending might cause inflation, it might lead to higher interest rates and lower growth, it might increase balance of payments deficits.
4. [18-25] L4: for a response which combines detailed analysis with clear examples of evaluative comment. Good responses will identify at least two potential conflicts and use economic theory to assess the accuracy of the statement under consideration.
5. [14-17] L3: for a clearly set out analysis of the links between budget deficits, the multiplier and the final effects on income, output and employment with some attempt to examine why this might make the achievement of alternative economic goals more difficult.
6. [10-13] L2: for an answer that demonstrates some limited understanding of how Keynesian policies might be used to solve the problem of unemployment. Answers are likely to be descriptive rather than analytical.
7. [1-9] L1: for an answer that shows some knowledge but does not indicate that the question has been fully grasped. The answer will have some correct facts but include irrelevancies.