A-LevelEconomicsGovernment Macroeconomic InterventionFeb/Mar 2020Paper 1 Q291 Mark

What is an example of fiscal policy aimed at increasing aggregate demand in an economy?

Q: What topic does this question test?

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

Aincreasing expenditure by firms on skills training programmes for unskilled workers

Bincreasing the commercial banks’ lending ability

Creducing the rate of income tax for all income earners

Dreducing the rate of interest on loans to manufacturing companies

✓ Correct Answer

The correct answer is C: reducing the rate of income tax for all income earners

📋 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 Government Macroeconomic Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2020 examination, Paper 1 Variant 2.

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