A-LevelEconomicsMacroeconomic PoliciesMay/June 2017Paper 1 Q301 Mark
An economy is currently operating close to its full employment level of national income. Which combination of macro-economic policies would be most likely to have net deflationary effects?
A10% cut in the standard rate of income tax and a 5% devaluation of the currency
B10% cut in the standard rate of income tax and a 5% revaluation of the currency
C10% rise in the standard rate of income tax and a 5% devaluation of the currency
D10% rise in the standard rate of income tax and a 5% revaluation of the currency
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of macroeconomic policies 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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