A-LevelEconomicsMacroeconomic Policies & ObjectivesFeb/Mar 2024Paper 1 Q211 Mark
An economy has an unemployment rate of 8%, an increase of 2% from the previous year. At the same time, the current account deficit rose from 3% of GDP to 4% of GDP. What would be most likely to reduce both unemployment and the current account deficit?
Adecrease government spending
Bdepreciation of the currency
Cincrease indirect taxation
Dincrease interest rates
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of macroeconomic policies & objectives 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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