A-LevelEconomicsMacroeconomic Aims and PoliciesFeb/Mar 2022Paper 1 Q301 Mark

What are government monetary policies that would be the most effective in a global recession?

Q: What topic does this question test?

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

Aallowing the rate of interest to fluctuate and increasing business taxation

Bincreasing the budget surplus and raising tariffs on imports

Ckeeping the rate of interest very low and increasing the money supply

Draising the rate of interest and restricting the money supply

✓ Correct Answer

The correct answer is C: keeping the rate of interest very low and increasing 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 Aims 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 2022 examination, Paper 1 Variant 2.

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