A-LevelEconomicsMacroeconomic PolicyFeb/Mar 2021Paper 1 Q281 Mark

The table shows the consumer prices index (CPI) for an economy expressed as an index number. year CPI 2016 100 2017 103 2018 101 2019 97 Which action is the government most likely to take to achieve price stability?

Q: What is the correct answer to this A-Level Economics question?

The correct answer is C: increase the money supply.

Q: What topic does this question test?

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

Aappreciate the exchange rate

Bdecrease the budget deficit

Cincrease the money supply

Dincrease the rate of interest

✓ Correct Answer

The correct answer is C: increase the money supply

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

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2021 examination, Paper 1 Variant 2.

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